Bitcoin bulls gain margin as long-term holder activity eases

Bitcoin continues to dominate discussions, with its recent price movements attracting particular attention. While the asset has struggled to regain its all-time high of over $73,000 in March, with recent attempts peaking above $71,000 earlier this week, the price has since retreated to around $68,231 as of time of writing.

This retracement marks a 7.3% decline from its March high, signifying a volatile period for the cryptocurrency, influenced by various underlying market factors.

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Long-term holders are decreasing sales, what does this mean for BTC

Glassnode, a renowned trading information platform, highlights a significant shift in Bitcoin market behavior. According to recent analysis by the platform, there has been a notable decline in distribution pressure from long-term holders (LTH) of Bitcoin.

Glassnode’s “Long-Term Binary Spending Indicator” tracks the selling activity of long-time Bitcoin holders, and its recent data indicates a marked reduction in selling pressure from this group.

Historically, when long-term holders reduce sales, it alleviates downward pressure on prices, which can result in more bullish market conditions.

Further information on Bitcoin’s price behavior comes from prominent crypto analyst RektCapital, who note on social media platform

As the crypto asset trades just below $69,000, RektCapital reveals that Bitcoin may not break out of its current reaccumulation range until around 160 days after the halving, projecting a significant breakout through September 2024. This analysis is crucial because it sets expectations for investors looking for signs of Bitcoin’s next big move.

#BTC

Historically, Bitcoin has always rejected the Range High on the first breakout attempt after the halving.

Moreover, history suggests that this reaccumulation is likely to last much longer.

Bitcoin tends to break out of these reaccumulation ranges only up to 160 days after… https://t.co/Jw7FcQui2Q pic.twitter.com/beLdOPqZOi

– Rekt Capital (@rektcapital) May 24, 2024

At the same time, Bitcoin’s recent price action has led to substantial losses for some traders, with Coinglass data showing approximately $41.68 million in liquidations for long Bitcoin traders and $14.34 million for long Bitcoin traders. traders short in the last 24 hours.

Overall, the crypto market saw total liquidations amounting to $292.07 million during the same period, affecting 78,874 traders.

Upcoming Challenges for the Bitcoin Market

According to Greeks.Live, the impending expiration of a significant volume of Bitcoin and Ethereum options adds another layer of complexity to the market’s immediate future. 21,000 BTC in options are set to expire soon, with a Put Call Ratio of 0.88 and Maxpain point at $67,000, representing a notional value of $1.4 billion.

Similarly, 350,000 ETH options are about to expire and their dynamics could influence the broader market due to their notional value of $1.3 billion and a Put Call ratio of 0.58.

May 24 Options Data
21,000 BTC options are about to expire with a Put Call ratio of 0.88, a Maxpain point of $67,000, and a notional value of $1.4 billion.
350,000 ETH options are about to expire with a Put Call Ratio of 0.58, a Maxpain point of $3,200, and a notional value of $1.3… pic.twitter.com/rftA9kBm4q

– Greeks.live (@GreeksLive) May 24, 2024

In this context, a put option gives its holder the right to sell an asset at a predetermined price within a specific time frame, which is often used as protection against a decline in the asset’s price.

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Conversely, a call option provides the right to buy under similar terms and is typically used in anticipation of a price increase. The Put Call Ratio is a tool that helps gauge market sentiment, with a higher ratio indicating a bearish outlook and a lower ratio suggesting bullish conditions.

Featured image created with DALL·E, chart by TradingView