Analysts indicate that Bitcoin’s price will encounter difficulties as long as long-term holders continue to realize profits.
According to analyst James Check, the inability of crypto markets to bounce back isn’t attributed to manipulation or “paper Bitcoin,” but rather to “good old-fashioned sellers.” He mentioned this observation on Sunday.
Check emphasized that the significant volume of sell-side pressure from current Bitcoin (BTC) holders is often overlooked, labeling it as “the source of resistance” at present.
He also shared a chart illustrating that the average age of spent coins has risen throughout the cycle, suggesting that it is the long-term holders who are selling.
Another chart revealed a spike in realized profit to $1.7 billion per day, while realized losses increased to $430 million daily, marking the third-highest level in this cycle.
Additionally, the “revived supply” from older coins has reached a significant level of $2.9 billion per day.
Bitcoin OGs Taking Profits
Crypto investor Will Clemente stated that “the past year of relative weakness for BTC has primarily been a transfer of supply from OGs to TradFi,” as evidenced by on-chain data.
“This dynamic will largely be inconsequential in the coming years, as the focus shifts to BTC’s relative weakness.”
Related: John Bollinger advises to ‘pay attention soon’ as significant movement could be on the horizon
Galaxy Digital CEO Mike Novogratz shared similar sentiments during an interview with Raoul Pal last week.
“Many individuals in the Bitcoin community, after holding for so long, have finally decided to ‘purchase something,’” he remarked, mentioning friends who bought yachts and parts of sports teams.
“People are taking profits as they’ve experienced a good run, and we are simply processing that shift.”
Novogratz confirmed that the only supply observed by his firm comprises “old OGs” and miners.
Weekly Close Holds Support
Bitcoin maintains support with a weekly closing candle at $108,700, according to TradingView.
“If it continues to hold, we may see the price rally to $120k+ over time. Stability at this level is crucial,” stated analyst “Rekt Capital” on Sunday.
At the time of writing, the asset had managed to reclaim $110,000, though it faces additional resistance just above this point.
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