Bitcoin is approaching its all-time high (ATH) with a recent sharp price increase. It is currently trading at around $109,404, having rebounded from $108,000 over the weekend.
However, while market sentiment shows strength, investor behavior suggests caution. Long-term holders (LTH) are showing uncertainty.
Bitcoin Holders Selling
The age consumption indicator tracking long-term holders' selling activity has recently surged. This is the largest surge in a year, indicating that LTHs are losing patience while waiting for a new ATH.
They control a significant portion of the Bitcoin supply, and their selling decisions have negatively impacted prices. Generally, such sales suggest weakening market sentiment.
Despite recent selling activity by LTHs, Bitcoin's price has not experienced a significant drop. This suggests that investor sentiment remains cautious but still resilient. The uncertainty of LTHs has not triggered a long-term decline, indicating that other factors are mitigating the impact of their sales.
Bitcoin's broader market momentum is also showing positive signals. Early this month, the number of new addresses surged, indicating optimism and interest in Bitcoin. The surge in new addresses suggests the market is vibrant and more investors are entering.
Interestingly, the number of new addresses slightly decreased over the weekend, but the decline was not significant. This indicates that Bitcoin's recent price movements have not deterred new investors.
BTC Price Facing Resistance
Bitcoin is currently trading at $109,404, just below the resistance level of $109,476. The recent rebound from $108,000 has placed Bitcoin in a strong position, with the next target being $110,000. If Bitcoin successfully breaks through this resistance, it will aim for the ATH of $111,980.
Bitcoin is currently 2.3% below its all-time high of $111,980. The path to this level is likely to be supported by both new investors and long-term holders. However, for Bitcoin to reach this level, LTHs must exercise restraint and avoid large sell-offs, which could disrupt price movements.
If the $109,476 resistance line holds strongly and Bitcoin ultimately fails to break through, the price could drop to $108,000 or even $105,585. This decline would suggest that the current upward trend is difficult to maintain.
