Bitcoin is entering what many consider probably the most pivotal week of this market cycle, not resulting from the looming U.S. election or the Federal Reserve’s upcoming rate of interest decision, but since it’s getting ready to breaking all-time highs. If BTC crosses this milestone, it is going to enter “price discovery” mode, potentially sparking an enormous rally across all the crypto market.
This bullish anticipation is supported by data from CryptoQuant analyst Maartunn, who highlighted that Bitcoin Long-Term Holders sold a formidable 177,617 BTC within the last seven days.
This wave of selling from seasoned holders often signals a bullish phase, indicating they’re taking profits ahead of a possible market shift. This positioning aligns with BTC’s momentum near its peak, suggesting that many see current prices as ideal to lock in gains, possibly making room for fresh buyers and latest demand.
With BTC so near all-time highs, any upward breakout could shift all the market’s sentiment and initiate a considerable bullish rally, marking this week as a critical period for BTC and the broader crypto landscape.
Bitcoin Entering The Bull Run Phase
Bitcoin is entering the ultimate phase of this cycle because it approaches all-time highs and flirts with uncharted territory. This pivotal moment has drawn significant attention from analysts and investors alike.
CryptoQuant analyst Maartunn recently shared the Balance Change by Time Held chart, revealing that BTC Long-Term Holders (LTH) sold 177,617 BTC within the last seven days. This chart illustrates the movement of older BTC, typically owned by investors with a long-term perspective.
Long-Term Holders are generally less impacted by market volatility in comparison with short-term speculators. Their activity often serves as a contrarian indicator; they have a tendency to purchase and increase their holdings during price dips and sell when prices surge. As BTC’s price has risen over the past few days, there was a noticeable uptick in LTH distribution, signaling a possible shift in sentiment amongst these seasoned investors.
This behavior is paying homage to patterns observed during previous bull runs in 2018, 2021, and 2024, where LTH activity was critical in price movements. The present surge in BTC’s price and increased selling from LTHs suggests that these investors is likely to be taking profits ahead of a possible breakout, reflecting their confidence out there’s trajectory.
As Bitcoin approaches its all-time highs, the dynamics between Long-Term Holders and the broader market will likely be crucial in determining whether it could possibly sustain momentum and enter a latest price discovery phase. This week could set the tone for the long run of Bitcoin and all the cryptocurrency market.
BTC Nearing ATH
After dipping below this significant level yesterday, Bitcoin is trading above the $68,000 mark. Because it hovers slightly below $69,000, market participants closely watch the developments surrounding the US election. For bulls to reclaim momentum and push towards a bullish trajectory, BTC must break above the $70,000 mark in the approaching days and challenge its all-time highs.
Nevertheless, the present volatile environment and uncertainty surrounding economic aspects could lead on to cost fluctuations that push BTC lower. If such a scenario unfolds, the important thing support level will likely be the $66,500 mark, a critical demand zone that upholds the bullish price structure. Maintaining support above this level is important for sustaining the upward momentum and avoiding a deeper correction.
Because the market awaits the election results, traders remain cautious, with price motion likely influenced by the political landscape and broader economic sentiment. The approaching days will likely be pivotal for Bitcoin because it seeks to ascertain a firm foundation to drive further gains and possibly enter a latest price discovery phase.
Featured image from Dall-E, chart from TradingView