The recent decline in Bitcoin amidst widespread macroeconomic ambiguity may not facilitate a swift return to its January $109,000 all-time peak (ATH), as some analysts anticipate.
“We ought to consider that we are currently in the pullback stage following the ATH and will probably keep consolidating for a while due to liquidity requirements,” CryptoQuant contributor XBTManager stated in a March 5 analysis note.
Long Bitcoin bids “feasible” when long-term holders resume purchases
XBTManager indicated that once short-term Bitcoin holders (BTC) — those retaining it for less than 155 days — commence selling, and long-term holders restart purchasing, long positions will “become feasible.”
Until that point, they advised traders to be cautious when entering positions in the asset.
“In the coming months, exercising caution is recommended, and high-risk trades should be steered clear of.”
In the days preceding Bitcoin reaching $109,000 for the first time on Jan. 20, before the inauguration of US President Donald Trump, short-term holders began to amplify their supply while long-term holders decreased theirs through selling, they elucidated.
The $109,000 peak on January 20 contributed to a decrease of around 100,000 BTC in long-term holder supply over the subsequent 30 days, but an even more substantial decline ensued in December when it initially reached a six-figure valuation.
Bitcoin has decreased by 1.43% during the last week. Source: CoinMarketCap
On December 1, long-term holder supply hit 15.2 million BTC, just four days prior to Bitcoin achieving $100,000 on December 5, based on Bitbo data. By December 20, it had slipped to 14.7 million.
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As of the time of writing, long-term holder supply stands at 14.4 million BTC, a reduction of 800,000 BTC since December 1.
Bitcoin fell below the $100,000 mark on February 4 amidst concerns over a trade conflict stemming from Trump’s proposed tariffs. It plunged even further to $85,000 at the February 27 Wall Street opening as markets absorbed the news of incoming US tariffs.
Source: Timothy Peterson
Later that same day, the cryptocurrency sank below the pivotal $80,000 threshold, nullifying nearly all the progress that had been made following Trump’s election victory on November 5.
At the time of publication, Bitcoin is valued at $87,100, as reported by CoinMarketCap.
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This article does not provide investment advice or suggestions. All investments and trading actions carry risks, and readers should perform their own analysis before making any decisions.
