Bitcoin Drops to $92K as Long-Term Holders Begin Profit-Taking
As Bitcoin approached the $100,000 mark, long-term holders began shifting from accumulation to distribution.
Data from the Long-Term Holder Supply Net Position Change reveals that, after accumulating assets from May to August 2024, holders started selling in late September.
From March to May, long-term holders were net sellers, likely taking profits, which led to a reduction in supply and potentially contributed to the subsequent price rise. However, the recent trend of distribution suggests that many holders are now cashing out as Bitcoin nears its six-figure target.
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Meanwhile, the Market Value to Realized Value (MVRV) ratio has reached levels typically associated with market euphoria. When the ratio surpasses its upper threshold, it often signals an overheated market and potential for a price correction. This indicator suggests increased speculative activity, raising concerns about the possibility of a price dip.
Bitcoin’s price spiked to $98,200 on November 21, before retracing slightly to around $92,000 at the time of writing. The price movement comes after key events like the U.S. election results.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
