Bitcoin is entering what many consider the most important week of this market cycle, not because of the upcoming US election or the Federal Reserve’s interest rate decision, but because it is on the verge of breaking a new high. If BTC surpasses this milestone, it will enter “price recovery” mode, which will likely cause a massive rally in the entire crypto market.
This bullish expectation is supported by data from CryptoQuant analyst Maartunn, who highlighted that Long-Term Bitcoin Holders sold an impressive 177,617 BTC in the past seven days.
This wave of selling from seasoned owners often indicates a bearish phase, indicating that they are taking profits ahead of a potential market reversal. This stop coincides with BTC’s momentum near its highs, suggesting that many see current prices as ready to close gains, possibly opening up space for new buyers and new demand.
With BTC so close to all-time highs, any upward move could change market sentiment and trigger a major rally, marking this week as a critical period for BTC and the broader crypto landscape.
Bitcoin Enters Bull Run Phase
Bitcoin is entering the final phase of this cycle as it nears an all-time high and flirts with uncharted territory. This milestone has attracted a lot of attention from analysts and investors alike.
CryptoQuant analyst Maartunn recently shared a Balance Change by Time Held chart, revealing that BTC Long-Term Holders (LTH) sold 177,617 BTC in the past seven days. This chart shows the movement of old BTC, which is usually held by investors with a long-term view.
Long Term Managers are generally less affected by market fluctuations compared to short term speculators. Their work often serves as a counterpoint; they tend to buy and increase their holdings during falling prices and sell when prices rise. As the price of BTC has increased over the past few days, there has been a significant increase in the distribution of LTH, indicating a possible shift in sentiment among these seasoned investors.
This behavior reminds us of the patterns seen during the previous bull run in 2018, 2021, and 2024, when LTH activity was important in price movements. The current increase in the price of BTC and the increase in sales from LTHs suggests that these investors may be taking profits ahead of a potential breakout, showing their confidence in the market’s direction.
As Bitcoin nears its all-time highs, the dynamics between Long-Term Holders and the broader market will be important in determining whether it can sustain momentum and enter a new phase of price recovery. This week could set the tone for the future of Bitcoin and the entire cryptocurrency market.
BTC Approaching ATH
After dipping below this key level yesterday, Bitcoin is trading above the $68,000 mark. With it hovering just below $69,000, market participants are closely watching developments surrounding the US election. For the bulls to gain momentum and move forward, BTC must break above the $70,000 mark in the coming days and challenge its all-time high.
However, the current volatile situation and the uncertainty surrounding the economic factors may lead to price volatility that makes BTC fall. If such a situation appears, the main support level will be the $66,500 mark, a critical demand area that supports the bullish price structure. Maintaining support above this level is important to sustain the upward momentum and avoid a deep correction.
As the market awaits election results, traders remain cautious, with price action likely to be influenced by the political climate and broader economic sentiment. The coming days will be crucial for Bitcoin as it seeks to establish a solid foundation to continue its gains and enter a new phase of price recovery.
Featured image from Dall-E, chart from TradingView
Source link