This week, Bitcoin experienced a significant price correction, attributed by experts to long-term holders taking profits. However, the cryptocurrency's price has since rebounded.
Reasons for Bitcoin's Price Correction
Jan Happel and Yann Allemann, known as Negentropic, opined that the recent Bitcoin price correction was due to long-term holders taking profits. Earlier this week, Bitcoin's price dropped to $90,000 before starting to recover.
Current State and Long-term Holders' Behavior
After the correction, Bitcoin's price stands at $95,719, marking a 1.5% increase over the past 24 hours. The founders of Glasnode highlighted that the long-term holders' actions were less aggressive compared to early 2024, possibly indicating that a local bottom has been reached.
Bitcoin's Dominance in the Market
Altcoins have begun to outperform Bitcoin in recent days, but the Glassnode cofounders believe Bitcoin has not yet lost its market leadership. A strong break below the 20-day SMA is required to confirm a shift.
Despite market fluctuations, Bitcoin continues to maintain its position, with long-term holders showing confidence in the cryptocurrency's future. Altcoins show temporary successes, but Bitcoin remains the key player.
