Bitcoin price will have a challenging road ahead as long as long-term holders continue to take profits, according to analysts.
The failure of the crypto markets to recover is not due to manipulation, bitcoin paper, or suppression, “just the good sellers,” said Analyst James Check on Sunday.
Check out the added sheer volume of sell-side pressure from existing bitcoin (BTC) holders are still not widely valued, and that is “The source of resistance ”for now.
The analyst shared a chart showing that the average age of spent coins drifted higher throughout the cycle, indicating that long-term holders are those seller.
Another chart showed that realized profits rose to $1.7 billion per day while realized losses climbed to $430 million per day, the third highest level of this cycle.
Meanwhile, the “surviving supply” from older coins reached the second highest level at $2.9 billion per day.
Bitcoin OGS is taking profit
Crypto investor Will Clemente Opined That “the last year of relative weakness for BTC was mostly a supply shift from OGS to Tradfi,” reflected in onchain data.
“This dynamic is hardly relevant in the coming years, as everyone is focused on the relative weakness of BTC.”
Related: John Bollinger says to ‘pay attention soon’ as the big move could be just around the corner
Galaxy Digital CEO Mike Novogratz expressed feelings in a interview with Raoul Pal last week.
“There are a lot of people in the Bitcoin world who ride it out for a long time and finally decide, ‘I want to buy something’,” he said, citing friends who bought a yacht and part of a sports team.
“People are trimming because they’ve had a good run and we’re just digesting that turnover.”
Novogratz confirmed that the only supply his firm has seen is “Old OGS” and miners.
The weekly close holds support
Bitcoin is holding support with a weekly closing candle at $108,700, according in TradingView.
“Continued holding here could see the price rally to $120k+ over time. Stability here is absolutely key,” said analyst ‘Rekt Capital’ on Sunday.
The property has been reclaimed for $110,000 at the time of writing, but it faces more resistance above this level.
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