Bitcoin’s price saw a positive start to the week, reaching a peak of $68,884. However, the rally may be short-lived as long-term BTC holders start booking profits ahead of the halving event.
On March 18, Bitcoin attempted to reclaim the $70,000 mark but was unsuccessful. On-chain data trends indicate significant bearish catalysts that could impact the price rally in the coming week.
Investors are shifting focus to other sectors like Layer 1 assets such as Avalanche (AVAX) and Solana (SOL), while some traders are investing in presale meme tokens. This diversion of attention from Bitcoin and Ethereum (ETH) is affecting their momentum.
Additionally, on-chain data reveals that Bitcoin long-term investors are becoming increasingly bullish as the halving date approaches. Santiment’s age-consumed metric, which tracks trading activity among long-term investors, shows a significant increase in the number of coins moved after being held for an extended period.
In March alone, Bitcoin age consumed crossed the 30 million mark seven times, compared to just five times in January and February 2024 combined. This spike in age consumed suggests that long-term investors may anticipate a price dip in the weeks ahead, possibly leading to a larger sell-off as the halving event draws nearer.
Moreover, long-term holders control a significant portion of the total Bitcoin circulating supply. Their selling pressure could dampen short-term price prospects, making it challenging for Bitcoin to reclaim the $75,000 territory.
Considering the selling frenzy among long-term investors, it seems unlikely that Bitcoin will surpass its all-time high above $75,000 in the coming week. IntoTheBlock’s data also supports this view, indicating that many holders bought in during the recent rally but may sell once prices approach their break-even point.
With the halving date looming and the possibility of continued selling pressure from long-term investors, Bitcoin’s price could see a downturn below $65,000. However, if Bitcoin ETF inflows continue to break records, the cryptocurrency may withstand the selling pressure and aim for the $70,000 mark.
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