Bitcoin’s price has trended within a narrow range since it hit a new all-time high of $103,647 on December 5. It has since faced resistance at $101,509 and found support at $94,306.
Currently trading around $98,000, the leading coin may struggle to break the $100,000 price mark in the meantime. This analysis delves into the reasons behind this resistance.
Bitcoin Long-Term Holders Book Gains
The negative readings from BTC’s Hodler Net Position Change confirm that its long-term holders (LTHs) have been actively selling their holdings, potentially contributing to the price consolidation. Per Glassnode data, on November 10, the metric’s value plunged to a five-month low of -112,471 BTC.
Hodler Net Position Change tracks the monthly change in the supply held by long-term Bitcoin holders. A positive value suggests these coin holders are accumulating. On the other hand, when the Hodler Net Position Change is negative, LTHs are selling more of their holdings, indicating profit-taking.
BTC Hodler Net Position Change. Source: Glassnode
Moreover, the decline in these investors’ coin-holding periods confirms their profit-taking habits. According to IntoTheBlock, over the past 30 days, BTC’s LTHs have reduced their coin-holding time by 0.06%.
Longer holding periods decrease selling pressure, enhance market scarcity, and often reflect investor confidence in the coin’s potential for price growth. In contrast, shorter holding periods can increase market liquidity and selling pressure. This usually signals uncertainty or a focus on short-term gains.
BTC Addresses By the Time Held. Source: IntoTheBlock
BTC Price Prediction: All Lies With the LTHs
At press time, BTC is trading at $98,240. If selling pressure intensifies, the price could test support at $94,306. Failure to hold this level may lead to a further decline to $92,076.
Bitcoin Price Analysis. Source: TradingView
Conversely, renewed accumulation by long-term holders (LTHs) could drive a rally above $100,000, potentially targeting the all-time high of $103,647.
