Bitcoin\u2019s recent explosive price action has resulted in a significant surge in profit-taking among long-term holders (LTHs).<\/p>\n
According to a review by Glassnode, the LTHs have realized $2.02 billion in daily profits, eclipsing the figure recorded in March 2024 and marking a new all-time high (ATH).<\/p>\n
The blockchain intelligence platform\u2019s report<\/a> shows long-term BTC holders distributed 507,000 coins since September, representing a substantial release of previously dormant supply.<\/p>\n While the amount is lower than the 934,000 BTC sold when the cryptocurrency rallied earlier in the year, it still represents a more aggressive approach. On average, 0.27% of the total LTH supply is being distributed daily, a level surpassed only 177 times in Bitcoin\u2019s entire trading history.<\/p>\n Glassnode believes this activity is critical for price discovery, as it is reintroducing large volumes of supply into liquid circulation. In the past, such periods of heightened profit-taking coincided with strong inflow demands, a key component for maintaining upward momentum.<\/p>\n A closer examination of the distribution patterns revealed that coins held for six months to one year are behind most of the sell-side pressure. This cohort accounts for at least 35% of total realized profits, which comes to about $12.6 billion.<\/p>\n Per Glassnode\u2019s analysis, the coins were mostly picked in 2023, and they reflect a swing-trade approach by investors who took advantage of the impetus that followed the launch of spot Bitcoin exchange-traded funds (ETFs) in January.<\/p>\n Conversely, those who have held their coins for longer than a year have been more conservative in their spending, suggesting that more seasoned heads remain optimistic about BTC\u2019s long-term prospects.<\/p>\n Bitcoin\u2019s recent run took it to within touching distance of the $100,000 mark. It peaked at $99,645 before dumping<\/a> more than $6,000 as short-term holders (STHs) took profit.<\/p>\n Currently, it is changing hands at just over $96,000, with Glassnode data highlighting a potential risk zone below $88,000, where minimal trading occurred during the last rally.<\/p>\n Glassnode says this so-called \u201cair gap\u201d in supply distribution could signal a vulnerable price area, especially if demand weakens or profit-taking increases.<\/p>\n Given BTC\u2019s historical price discovery process involving cycles of upswings, corrections, and consolidations, the experts suggest that a lack of substantial trading volume in the $88,000 range may necessitate a pullback to establish stronger support before the coin can confidently break through $100,000.<\/p>\n Additionally, they suggested that for the cryptocurrency to have a sustainable climb, the market needs to absorb the ongoing sell-side pressure. However, given the jump in realized profits by LTHs, a supply overhang exists in the market despite strong demand, something Glassnode feels may weigh on prices in the short term.<\/p>\n The post Will BTC Surge to $100K or Crash to $88K First? (Analysis)<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin\u2019s recent explosive price action has resulted in a significant surge in profit-taking among long-term holders (LTHs). According to a review by Glassnode, the LTHs have realized $2.02 billion in daily profits, eclipsing the figure recorded in March 2024 and marking a new all-time high (ATH). Long-Term Holders Ramp Up Distributions The blockchain intelligence platform\u2019s […]<\/p>\n","protected":false},"author":0,"featured_media":24040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-24039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/24039"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24039"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/24039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/24040"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Supply \u201cAir Gap\u201d Below $88K Raises Correction Concerns<\/h2>\n