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The valuation of Bitcoin will face a difficult path in the future as long as long-term holders keep realizing profits, as per analysts.
The inability of cryptocurrency markets to rebound was not attributed to manipulation, phony Bitcoin, or suppression, “merely classic sellers,” remarked analyst James Check on Sunday.
Check mentioned that the significant amount of selling pressure from current Bitcoin (BTC) holders is still not widely acknowledged, and that it is “the cause of resistance” at this time.
The analyst released a chart illustrating that the average age of spent coins has risen throughout the cycle, indicating that long-term holders were the ones disposing of their assets.
Another chart indicated that realized profits had surged to $1.7 billion daily while realized losses ascended to $430 million per day, marking the third highest point in this cycle.
Simultaneously, the “revived supply” from older coins hit its second-highest point at $2.9 billion daily.
Bitcoin OGs realizing profits
Crypto investor Will Clemente suggested that “the past year of relative weakness for BTC has primarily been a shift of supply from OGs to TradFi,” which is evident in onchain data.
“This dynamic will be largely inconsequential in the forthcoming years, as everyone is fixated on BTC’s relative weakness.”
Related: John Bollinger advises to ‘pay attention soon’ as significant movement could be imminent
Galaxy Digital CEO Mike Novogratz echoed this view in an interview with Raoul Pal last week.
“Numerous individuals in the Bitcoin realm who had held on for so long finally decided, ‘I want to purchase something’,” he recounted, pointing to friends who acquired a yacht and a stake in a sports team.
“People are trimming their positions because they’ve had a fantastic run and we’re merely processing that transition.”
Novogratz confirmed that the only supply his firm has observed is from “older OGs” and miners.
Weekly closure maintains support
Bitcoin has maintained support with a weekly closing candle at $108,700, as per TradingView.
“Sustaining this level could lead to a price increase to $120k+ eventually. Stability at this point is absolutely crucial,” stated analyst “Rekt Capital” on Sunday.
The asset had regained $110,000 at the time of this writing, but it encounters more resistance just above this threshold.
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