- Bitcoin LTHs sold 366k BTC, the highest level since April.
- BTC declined by 4.47% over the past 24 hours.
Since hitting an ATH of $99800, Bitcoin [BTC] has experienced a decline to hit a local low of $92584. In fact, at the time of writing, Bitcoin was trading at $94972. This marked a 3.47% decline over the past day.
Before this, Bitcoin had been on an upward trajectory, hiking by 3.44% on weekly charts and by 41.61% on monthly charts.
Therefore, this sharp decline after a historic rally raises questions about what’s driving it. Well, according to Glassnode, Long-Term Holders(LTHs) may be the reason.
Who is selling Bitcoin?
In their analysis, Glassnode posited that Bitcoin’s LTHs have come out to sell. As such, they have sold 366k BTC tokens, which is the highest level since April. This might have caused selling pressure, resulting in a market pullback.
Source: Glassnode
Therefore, with the rising profit margins witnessed in the past weeks, LTHs have turned to profit-taking.
Among these LTHs are the 6 million to 12 million cohorts. They have led the charge, spending at least 25.6k BTC tokens daily in profit.
Source: Glassnode
Thus, this group spent BTC with an average cost basis of 71% lower than the average price of $57.9k. And, with BTC hitting a record high of $99k, these LTHs capitalized big on the rally.
Source: Glassnode
Based on this observation, the recent market correction arises from increased selling activity from LTHs.
Impacts on BTC Charts?
According to AMBCrypto’s analysis, although BTC has declined on daily charts, it remained in a bullish phase. This recent pullback has allowed whales and retail traders to accumulate.
Source: CryptoQuant
For starters, Bitcoin’s Whale Exchange Ratio has declined over the past week from 0.4 to 0.32. This shows that although LTHs have been selling, whales continue to accumulate BTC.
Therefore, whales are not actively transferring their BTC holdings to exchanges, which is often a precursor to selling. This signals a bullish outlook among whales as they aim to hold for long-term gains.
Source: CryptoQuant
Additionally, Bitcoin’s Fund flow ratio has surged from 0.08 to 0.15 signaling increased buying pressure as there’s more funds inflow than outflow.
Source: Cryptoquant
Finally, we can see this bullishness, through the rising Stock-to-Flow(SFR) reversion. When SFR reversion rises, it suggests growing market confidence in BTC’s value, often due to increased demand and adoption.
Simply put, although Bitcoin LTHs have turned to profit-taking over the past week, BTC remains in a bullish phase. Therefore, we can see that despite these LTH’s selling activities, whales are accumulating while funds inflow remains high.
Read Bitcoin’s [BTC] Price Prediction 2024-25
With these conditions, BTC could make more gains. As such, BTC will reclaim $99,000 resistance where it has faced three rejections. Above these levels, there’s no significant resistance and the crypto could make another ATH.
