Long-term Bitcoin Investors Sell Their Holdings Below Resistance Levels

By 0xK2 05/7/23 11:15 AM

In recent weeks, Bitcoin has been struggling to break above the resistance levels of $30,000 and the descending channel. According to CryptoQuant, a leading on-chain analytics platform, long-term investors have been selling their Bitcoins below these resistance levels, indicating increased selling pressure.

Onchain data reveals that investors who have held Bitcoins for five to seven years have moved more than 6,000 units in the past two weeks. This is a significant increase in selling activity compared to the previous weeks. Furthermore, the transfer of Bitcoins has also increased among investors who have held their Bitcoins for three to five years and more than ten years.

This increase in selling pressure by long-term holders is a cause for concern for Bitcoin traders and investors. It suggests that these investors are not confident that Bitcoin will break above the resistance levels and continue to rise in price. Instead, they are choosing to sell their Bitcoins at current prices.

If Bitcoin fails to break above the resistance levels, the recent price increase should be considered a retracement in the downward trend. In other words, Bitcoin could continue to decline in value, and investors who hold their Bitcoins could experience significant losses.

However, it’s important to note that the current market conditions are not entirely negative. Despite the increased selling pressure, there are still many positive indicators for Bitcoin. For example, the number of active addresses and the daily trading volume have remained relatively stable, indicating continued interest in Bitcoin.

In conclusion, the recent increase in selling activity by long-term Bitcoin holders below the resistance levels is a cause for concern for Bitcoin traders and investors. It suggests that these investors are not confident that Bitcoin will continue to rise in price. However, it’s important to consider all the indicators and not make any hasty decisions based on one factor alone. As always, investing in Bitcoin requires careful consideration and a long-term perspective.

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