Bitcoin (BTC), the leading cryptocurrency, is facing some challenges right now. It couldn't break through the important resistance level of $105,000. This price point has been a tough ceiling, keeping Bitcoin from moving higher.
Things got a bit worse as long-term holders decided to sell off their holdings. This added more selling pressure and pushed the price down.
Recent data shows a significant rise in Bitcoin’s Liveliness, which tracks how active long-term holders are. This spike indicates that many of these holders sold their assets recently. The changes in their balances and an increase in Coin Days Destroyed also point to a lot of previously dormant Bitcoin being moved.
Long-term holders are often seen as the backbone of Bitcoin's stability. When they sell, it usually leads to bearish trends. This has been happening over the weekend and continues today, contributing to the ongoing price drop.
Despite this downturn, Bitcoin's overall momentum suggests there might be room for a comeback. The Network Value to Transaction (NVT) Signal, a key valuation indicator, is currently low. This suggests that Bitcoin may be undervalued compared to its transaction activity, hinting at potential future growth.
While the NVT signal gives a somewhat positive outlook, broader market conditions will need to align for Bitcoin to regain strength. Right now, investors aren’t overly bearish. This means sentiment could shift quickly if conditions improve, such as increased buying activity or favorable economic news.
In the last 24 hours, Bitcoin’s price has dropped by 3.88%, bringing it down to $100,682. This decline is mainly due to the sell-offs by long-term holders and Bitcoin's struggle to close above that $105,000 resistance level, which reinforces the bearish sentiment in the short term.
The next key support level is at $100,000. This is an important psychological and technical level. Bitcoin is likely to bounce back from this support or settle here for a while. However, if it falls below this level, it could drop to $95,668, increasing losses and intensifying bearish pressure.
On the flip side, if market conditions improve and Bitcoin can reclaim $105,000 as support, the bearish outlook could change. In that case, Bitcoin might push toward its all-time high of $109,699, which could restore investor confidence and set the stage for a new rally.