- According to the latest analysis, the profit-taking trend could continue.
- However, a bullish pattern appeared on BTC’s 12-hour chart.
Bitcoin [BTC] Momentum remained low and continued to consolidate around $96,000. The latest analysis revealed a possible reason behind this trend. The analysis even showed that the ongoing trend may continue.
Plan for long-term holders of Bitcoin
After reaching $97,000 on December 2, Bitcoin’s price plummeted to $94,000. However, the king coin gained slightly bullish momentum as it crossed $96k again.
This price movement indicated a consolidation phase within this range as it fell short of investors’ expectations of reaching $100,000.
Meanwhile, Alpharactal, a data analytics platform, posted one tweet pointing out how the actions of long-term holders can affect the price of BTC.
According to the tweet, LTHs have distributed a significant amount of BTC at a profit, increasing short-term selling pressure. This trend is clearly reflected in the SOPR indicator for long-term holders.
Source:
Furthermore, these holders’ addresses are still at extremely profitable levels as of the end of 2023, according to the Long Term Holders NUPL Heatmap.
This indicated that LTHs could potentially make more profits, potentially causing a further increase in selling pressure. If true, this factor could cause BTC’s price to consolidate. In fact, a similar trend was observed during BTC’s previous cycles.
The tweet mentioned
“It is important to note that this distribution phase by long-term holders may extend over several months, as observed in all previous cycles. This underlines their strategy of taking advantage of bullish cycles to realize profits from BTC held inactive for more than 155 days.”
Will BTC Continue to Consolidate?
Since the aforementioned analysis suggested the possibility of continued profit-taking, AMBCrypto checked other data sets to see if they also suggest a similar future, which could keep BTC from moving higher.
Glassnode’s data showed that BTC’s depletion constant among sellers began to decline after reaching a peak. In quite a few cases, when the benchmark fell, it was followed by slight price increases.
Source: Glassnode
The Pi Cycle Top indicator indicated that BTC has a market top of over $124,000. Therefore, if profit-taking subsides and buying pressure increases, it won’t be too ambitious to expect BTC to reach $100,000 in the coming weeks.
Read Bitcoins [BTC] Price prediction 2024–2025
Moreover, we found that the price of BTC was moving within a bullish ascending triangle pattern. A successful breakout above that level could spark another bull rally.
The chances of this were reasonable, as the Relative Strength Index (RSI) registered an increase. This meant that buying pressure increased, which has the potential to increase the price of BTC.
Source: TradingView
