Analysts predict that Bitcoin’s price will face difficulties as long-term holders continue to take profits.
The crypto market’s failure to rebound is attributed not to manipulation, paper Bitcoin, or suppression, but rather “just good old-fashioned sellers,” stated analyst James Check on Sunday.
Check emphasized that the sell-side pressure from current Bitcoin (BTC) holders is still underestimated and serves as “the source of resistance” at this time.
He also shared a chart indicating that the average age of spent coins has increased throughout the cycle, suggesting that long-term holders are the ones selling.
Another chart revealed that realized profit surged to $1.7 billion per day while realized losses rose to $430 million per day, marking the third highest level this cycle.
Additionally, the “revived supply” from older coins hit its second-highest point at $2.9 billion per day.
Bitcoin OGs Taking Profits
Crypto investor Will Clemente noted that “the past year of relative weakness for BTC has primarily been a transfer of supply from OGs to TradFi,” as shown in on-chain data.
“This dynamic will be largely irrelevant in the coming years, as everyone’s focus shifts away from BTC’s relative weakness.”
Related: John Bollinger advises to ‘pay attention soon’ as a significant move could be on the horizon
Galaxy Digital CEO Mike Novogratz reflected similar thoughts in an interview with Raoul Pal last week.
“Many in the Bitcoin community who have held for so long finally decided, ‘I want to buy something’,” he mentioned, referencing friends who purchased a yacht and part of a sports team.
“People are trimming because they’ve had a great run, and we’re just digesting that turnover.”
Novogratz confirmed that the only supply his firm has witnessed comes from “old OGs” and miners.
Weekly Close Holds Support
Bitcoin has maintained support with a weekly closing candle at $108,700, according to TradingView.
“If stability continues here, we could see the price rally to over $120k in time. This level of stability is crucial,” remarked analyst “Rekt Capital” on Sunday.
The asset had reclaimed $110,000 at the time of writing, but faces additional resistance just above this threshold.
Magazine: Ether’s price anticipated to soar, Ripple seeks $1B XRP buy: Hodler’s Digest
