Bitcoin Long-Term Holders Tighten Grip as Selling Pressure Wanes, Signaling Potential Rebound

Since the general crypto market entered a volatile period, Bitcoin has faced persistent heightened selling pressure from investors and traders

As the broader crypto market continues to experience a downturn, an on-chain analyst at CryptoQuant has highlighted an encouraging shift in investors’ sentiment toward Bitcoin.

In a recent post on the X (formerly Twitter) platform, CryptoQuant’s Axel Adler Jr. noted that an analysis of the Bitcoin Long-Term Holder (LTH) behavior has revealed a significant reduction in spending activity among LTHs, signaling a change in market dynamics.

Examining the Bitcoin LTH Behavior Analysis metric, the analyst found that LTHs are now selling at a much lower rate compared to the spending activity observed around the $90,000 and $100,000 price levels.

The data shared by Axel Adler indicates that LTHs were selling a substantial amount of coins during those periods, with a daily selling volume of over 80,000 BTC. However, this selling pressure has since dropped to an average of 40,000 BTC sold per day.

It is worth noting that the last time a significant selling trend was observed among LTHs was at the $100,000 price point, leading the analyst to identify the $120,000 level as the next potential target where LTHs may begin to sell coins at a large scale again.

According to the analyst, once this price threshold is crossed, LTHs will be compelled to sell irrespective of market conditions, having already secured a 500% profit at that point.

As traders eagerly anticipate BTC's move toward establishing new all-time highs, keeping an eye on this trend will be crucial in gauging market sentiment and predicting price movements.

Meanwhile, Captain Faibik, a technical analyst and investor, has expressed optimism regarding a potential price recovery for BTC, anticipating a rally back to the $106,000 level.

In a recent tweet, Captain Faibik shared his analysis, which is based on the 1-day chart for BTC. The chart shows the formation of a Falling Wedge technical pattern, a bullish price structure that often indicates a price reversal to the upside following a period of declining price movements.

According to the analyst, a breakout from this Falling Wedge pattern could propel BTC to reclaim the $106,000 price barrier in the upcoming sessions.

With strong market sentiment, the analyst anticipates that BTC could continue to rally further, potentially reaching a new all-time high in the near future.