Long-term Bitcoin (BTC) holders have begun selling their assets as the cryptocurrency approaches the $120,000 mark. This has sparked discussions about potential shifts in market dynamics.
Profit-Taking by Long-Term Holders
Recent data from CryptoQuant indicates that long-term holders have started taking profits, reflecting their uncertainty in the current market situation. At this resistance level, some participants have opted to sell after previous cycles of growth. Overall selling pressure remains moderate; however, attention has been drawn to Galaxy Digital, which reportedly offloaded around 80,000 BTC. This may indicate institutional activity rather than retail-driven selling.
Declining US Demand for Bitcoin
According to a report by CryptoQuant, there is a cooling demand for Bitcoin in the US, as evidenced by signals from the Coinbase Premium Index. Recently, this index has declined, indicating that there is less interest in acquiring Bitcoin at current price levels. Nonetheless, the index remains in positive territory, albeit at considerably lower levels compared to previous accumulation phases. Historically, US demand has played a crucial role in pushing Bitcoin prices upwards.
Market Optimism for Bitcoin and Growth Predictions
Despite signs of weakening demand from the US and long-term holders cashing out, some experts remain confident in Bitcoin's strength. Steve Gregory, founder of Vtrader, believes that Bitcoin is poised for another significant upward move, citing recent positive trade developments. He predicts that the next price could reach $139,000, noting that the current moment in the market feels like 'peak cycle gains.'
The actions of long-term Bitcoin holders and the decline in US demand are crucial factors that may influence future market movements. Experts' predictions add optimism, but the situation requires careful monitoring.
