Bitcoin (BTC) Price Prediction: Delaying A Drop as Long-Term Holders (LTHs) Remain Largely Inactive Despite Market Panic

Bitcoin has recently shown signs of a rounding top pattern, marked by a 6.4% decline over the last 24 hours. This pattern was validated when BTC fell

As Bitcoin's price continues to fluctuate, technical indicators suggest a potential rounding top pattern. This pattern is characterized by a gradual rise followed by a sharp decline, indicating a shift in market sentiment.

After falling to an intra-day low of $90,000, Bitcoin quickly recovered, thanks to a last-minute buying surge. This price movement triggered panic selling among investors, leading to a rapid decline of over 6.4% within 24 hours.

However, a key indicator suggests that this market drop may be short-lived.

Over the past two days, there has been a significant uptick in Bitcoin deposits to exchanges, with over 80,000 BTC, valued at approximately $7.5 billion, being moved onto exchanges. This increase is often viewed as a sign of impending selling, as investors typically seek liquidity during market downturns.

However, this large-scale movement of BTC could simply reflect panic selling rather than a long-term shift in market sentiment. Investors usually move their assets to exchanges during times of uncertainty, but this behavior does not always indicate a sustained bearish trend.

The Coin Days Destroyed (CDD) metric provides insight into market sentiment by tracking the movement of long-term holders’ coins. Spikes in CDD are usually associated with market sell-offs. Interestingly, despite Bitcoin’s sharp decline to $90,000, long-term holders (LTHs) remained largely inactive.

This resilience suggests that LTHs are confident in a recovery, indicating that the market’s short-term volatility may not deter them. The inactivity of LTHs suggests that they are holding firm, indicating that this decline might just be a temporary blip rather than the beginning of a long-term bearish phase.

Bitcoin Price Prediction

Bitcoin has formed a rounding top pattern, but it's possible that this could transition into an inverse cup and handle pattern. The bearish momentum currently isn’t as intense as it could be, giving BTC a chance to bounce from the support at $93,625.

If Bitcoin successfully bounces back, it could rise toward $100,000 after breaching $95,668. This would mark a critical recovery and likely see a return of investor confidence. However, if the bearish pattern persists, Bitcoin may see a further drop to $92,005 in the near term.

A successful breach and flip of the $100,000 resistance into support would invalidate the bearish outlook. This could potentially trigger a rise to $105,000, marking a recovery from recent losses.