Bitcoin’s price has been stuck in a consolidation phase for the past two months, fluctuating between $50,000 and $64,700. Despite the price struggles, long-term Bitcoin holders (LTH) are showing a surprising trend they’re not moving their coins. This behavior has caught the attention of market analysts, signaling that long-term holders remain confident in Bitcoin’s potential.
According to CryptoQuant’s on-chain analyst Darkfost, this stability in movement may point to a decrease in selling pressure. Could this mark the beginning of a new phase for Bitcoin?
Long-Term Bitcoin Holders Not Selling
Darkfost’s analysis reveals that long-term Bitcoin holders are showing resilience, as they continue to hold onto their assets. This trend is significant because it usually suggests that LTH believes in the future growth of Bitcoin’s price. Even though Bitcoin has faced challenges in regaining $67K price levels, the decision of these holders to hold longer reflects a strong belief in the asset’s potential.
The fact that long-term Bitcoin holders are not moving their coins is a positive sign for the market. It means that there is less selling pressure, which usually helps stabilize prices.
When there is no major sell-off from long-term holders, Bitcoin tends to hold its ground or even prepare for an upward movement.
This current behavior could be setting the stage for a potential price rally. Though the market might not see immediate bullish action, the lack of selling from LTH is often seen before major price increases.
Bitcoin Eyes Recovery Amid U.S. Election
As the 2024 U.S. Presidential Election approaches, with only 41 days remaining, the crypto market is anticipating a major boost, especially if a pro-crypto candidate wins. Notably, Donald Trump has expressed plans to turn the U.S. into a “crypto planet,” potentially making Bitcoin a strategic reserve, which could further influence Bitcoin’s market trajectory.
Bitcoin is currently facing a key resistance level near $65,000. Should it break this level, the price could quickly rise to $65,379. A successful close above this resistance might trigger a 7% rally, potentially retesting the July 29 high of $70,079.
As of now, Bitcoin is trading at $63,454, reflecting a slight 1.2% drop over the past 24 hours. However, the overall sentiment remains positive as long-term holders continue to hold strong.
Source: https://coinpedia.org/news/long-term-bitcoin-holders-are-not-moving-their-coins-anymore-whats-next-for-btc/