Bitcoin faces potential risks from the possible sell-off of over 613,000 BTC, which could shift the current bullish trend.
Selloff and Its Impact
In the last 24 hours, Bitcoin’s price has been volatile as sellers push to keep it below the $119,000 level. Coinglass data indicates that over $55 million of positions were liquidated, with more than $41 million coming from buyers who expected a price increase. Over 613,200 BTC, purchased around $118,573, are currently held by investors sitting on losses, posing a risk for further sell-offs.
Changing Investor Behavior
Bitcoin’s recent surge to new highs has led to notable changes in investor behavior. Long-term holders, who typically keep their assets for over 155 days, are starting to sell. Reports indicate that these investors have sold around 52,000 BTC since the last high was reached. Analyst Axel Adler Jr. noted that this sell-off trend emerged around the $118,000 mark.
Future Prospects for BTC
Bitcoin dipped below the 20-day moving average, but the long lower shadows on the candlestick indicate that buyers stepped in at lower prices. Currently, BTC is trading at $117,993, declining over 0.3% in the last 24 hours. If bulls manage to push the BTC/USDT pair above the key resistance zone between $119,119 and $120,220, momentum could regain. Otherwise, if it falls below the support level at $115,000, this could lead to significant losses, potentially dragging Bitcoin down to the psychological support level of $110,000.
The current market situation for Bitcoin suggests high risks for investors. The forthcoming days may prove critical for the cryptocurrency’s price development.
