Clear signals show that long term holders of Bitcoin are slowly starting to sell their holdings. After the initial relief rally earlier this year in June, the holders profited more compared to the recent times. Long term holders are those who have been holding their crypto assets for more than six months. They appear to be profiting less from this rally compared to short term holders.
Bitcoin Holders Selling Their Holdings?
According to the findings of Crypto Quant, long term Bitcoin holders are profiting less from the current rally compared to the short term investors. Long term holders have been slowly selling their coins, Crypto Quant data found.
“This is shown by the divergence on the chart, in which the fact that long term holders profited more after the initial relief rally in June than at the current $25,300 top.”
Upward Or Downward Movement?
This movement indicates the possibility of a upward or downward trajectory for Bitcoin price. As there is selling pressure, we could see a breakout both downwards and upwards. The Crypto Quant analysts predict a target of $28,000 to $32,000 for the medium term. Also, there is a slight chance that Bitcoin could breach the June price lows.
“On a shorter term, BTC could retest $23,000, but this could happen after getting another rejection from the $19,000s.”
In addition, the Bitcoin miner reserves have been on a downward trend in recent times. For Bitcoin traders, this is not a great sign as it could trigger yet another price drop. Also, the trader community is closely watching the upcoming Ethereum Merge.
Meanwhile, BTC has for the first time in over 30 days dropped to below $20,000 level. As of writing, Bitcoin is trading at $19,938.44, up 0.01% in the last 24 hours, according to price tracking site CoinMarketCap. The last time BTC traded below the $20K range was on 14 July.