Bitcoin Confronts Barrier at $73k with Increased Distribution Pressure from Long-Term Holders

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by Giorgi Kostiuk

3 years ago

Made with AI


Bitcoin is currently facing resistance at its latest all-time high price of $73k, with long-term holders of the token contributing to the overall distribution pressure. Despite the market generating a per-day realized profit of $2.6B, the crypto coin has experienced a significant uptrend in the past few weeks.

Moreover, Bitcoin has undergone a correction and consolidation beyond the $61k mark, with prices retracting by approximately -15.4% from the recent $73.1k peak observed on the 13th of this month. Following this correction, the value fell to $61.8k on the 20th of March before recovering.

As the token reached $70k once again, the movement and duration of its price performance mirrored those seen in both 2021 and 2020, stimulating speculation about resistance levels. Notably, as prices dropped from $73k to $61.2k, 2.0 million Bitcoin moved from a profitable to a loss position. However, as the market rebounded to $66.5k, 1.0 million tokens shifted back into a profit position.

A significant amount of the 2.0 million tokens that were valued above $61.2k changed hands, with the market recording a realized profit exceeding $2.6 billion through on-chain transactions as it touched $73.2k.

Approximately forty percent of the total profit emanated from long-term holders, including investors tied to the GBTC Trust, while short-term holders leveraged incoming liquidity to capture a further $1.56 billion in realized profit. This trend aligns with previous bull markets, where long-term BTC holders have typically asserted dominance during profit-taking phases.

The recurring price spikes and movement of older token supplies hint at the initiation of Bitcoin's 'Euphoria Phase,' akin to patterns observed in prior bullish cycles.

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