Bitcoin’s price continues to struggle below the psychological $85,000 mark, failing to break past this critical level over the past two months.
Despite some attempts to secure a rise, the leading cryptocurrency has remained stagnant, increasing pressure on long-term holders (LTHs). These investors, once enjoying solid profits, are now seeing a decline in their unrealized gains.
Bitcoin Investors Are Pulling Back
The MVRV Long/Short Difference, a key metric used to gauge market sentiment, reveals a concerning trend for LTHs. The indicator recently hit a two-year low, suggesting that long-term holders’ profits are at their lowest since March 2023. This shift indicates that the market conditions are increasingly unfavorable for LTHs.
As Bitcoin’s price fails to recover, short-term holders (STHs) are beginning to dominate, capitalizing on the price fluctuations. Meanwhile, long-term holders (LTHs), facing diminishing profits, hold off on buying or holding more.
The overall momentum of Bitcoin, measured by technical indicators, also reflects bearish signals. The HODLer net position change further backs this narrative, as it shows that LTHs have sold a significant portion of their holdings over the last two weeks. In total, these sales amounted to more than 6,596 BTC, which is worth over $550 million.
Although this figure may not be enormous, the psychological shift from confidence to caution among LTHs is a larger concern. This lack of conviction could delay Bitcoin’s recovery and contribute to further price stagnation. In turn, this could further limit market activity and exacerbate the ongoing downturn.
BTC Price Is Facing A Decline
Bitcoin’s price is trading at $84,421, hovering just above the crucial support level of $82,619. The price remains trapped under the key $85,000 resistance level, which could cause further pressure if it fails to break above. If Bitcoin loses support at $82,619, a decline to the next major psychological support of $80,000 is possible.
If the bearish trend continues, the price could fall further, with $78,841 emerging as a critical level to watch. Losing this support would mark a more significant downturn, confirming the continued market weakness and deepening the bearish outlook for Bitcoin.
However, if Bitcoin manages to breach and hold $85,000 as support, it could ignite a recovery, pushing the price back up toward $86,848. A sustained rise above $85,000 would invalidate the current bearish trend and pave the way for a potential surge toward $89,800, reestablishing confidence among investors.
Disclaimer
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