Long-term Bitcoin holders have, in total, spent a milestone $10 billion to buy the cryptocurrency and have been pulling back from selling as its price retreats from its 2021 all-time highs, says an analyst.
“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” CryptoQuant contributor Amr Taha said in an Aug. 27 post.
Long-term holders less likely to panic sell
The realized cap takes into account the price at which each Bitcoin (BTC) was last sold. It’s realized cap is “often compared to Market Cap to get a sense of the overall market vibe,” according to crypto analytics firm Bitbo.
Long-term holders are those who’ve held Bitcoin for over 155 days. Taha explained that once holders have crossed the 155-day mark, “the likelihood of selling decreases significantly, meaning these holders are less likely to sell during short-term market fluctuations.”
Since Bitcoin began its 29-day streak of trading below $69,000 on July 30, selling pressure from long-term holders has “decreased 3.7 times,” fellow CryptoQuant contributor Axel Adler noted on Aug. 27.
Bitcoin is currently trading at $59,404, down 5.47% over the past 24 hours. It’s down slightly on the week by 0.11% after touching a high of $64,791, according to CoinMarketCap.
Bitcoin’s price has fallen below the crucial ,000 level that traders have been watching closely. Source: CoinMarketCap
Its current price is around 8% lower than what the average Bitcoin long-term holder had paid for Bitcoin — $64,490, according to Chainexposed data.
However, crypto traders believe the price might see further downside, which may force long-term holders to hold on even longer while they wait for better profit-taking opportunities.
Related: Bitcoin chart signals possible ‘extremely’ quick move to $68K — Traders
“Bitcoin will retrace deep enough to convince you that the Bull Market is over,” pseudonymous crypto trader Rekt Capital added.
Many traders view $50,000 as a crucial support level, and if it breaks, it could push Bitcoin into an uncertainty zone.
It comes after a June Glassnode report found that around three-quarters of all circulating Bitcoin hasn’t been moved for the past six months or more.
Magazine: Elon Musk is worth 100K followers: Yat Siu, X Hall of Flame
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.