Emily Walker
As Bitcoin maintains its upward trajectory, recent on-chain data indicates that long-term Bitcoin holders are starting to liquidate their assets. This pattern has previously been observed around market peaks during the 2021 bull run, leading to speculation that Bitcoin may be nearing a similar high again.
Long-Term Bitcoin Holders Selling: A Signal of a Market Top?
Following Donald Trump’s victory in the US Presidential elections, Bitcoin experienced a dramatic rise, reaching its previous all-time high of $100,000. During this period, many large investors chose to hold their positions rather than execute sales.
However, recent on-chain insights reveal that long-term holders are now starting to sell their Bitcoin. Noted crypto analyst Ali Martinez points out that this kind of selling often correlates with market tops.
The chart shared by Martinez on X (formerly Twitter) visualizes the fluctuations in Bitcoin’s long-term holder positions. Areas highlighted in green indicate accumulation by holders, while red areas denote selling activity.
According to Martinez, historical data suggests that long-term holders often start to distribute their assets as prices approach a market peak, as seen during the 2021 Bitcoin bull run.
From 2017 to 2021, the most significant sell-off phases coincided with Bitcoin’s final pushes to new all-time highs, subsequently leading to substantial price corrections, signaling the bull market’s end.
The latest red zone on the chart indicates that long-term holders are again offloading their Bitcoin. If past patterns hold true, this selling could suggest Bitcoin is nearing its peak, although another rally may still be possible.
Though historical trends don’t promise identical future occurrences, they can offer valuable insights into changing market dynamics. With Bitcoin’s rapid increase beyond the $100,000 mark, a market peak could be imminent.
Bitcoin Reaches New Heights: What Lies Ahead?
Recently, Bitcoin achieved a new all-time high, soaring past resistance levels to hit $106,260. The cryptocurrency experienced a rise of over 4.8% in just one day, generating excitement in the crypto arena. However, after reaching this peak, BTC has adjusted to $105,013 as of the latest reports.
Crypto analyst Captain Faibik expressed his enthusiasm about the new peak, sharing a bullish perspective for Bitcoin’s future on X. He noted that the confirmation of an Ascending Triangle breakout suggests a continuation of the upward trend on the daily chart.
According to Faibik’s forecast, Bitcoin may touch some support levels before moving into its next bullish phase. He has set a price target of between $113,000 and $115,000 for Bitcoin by the end of 2024.