Bitcoin (BTC) has dropped from its recent peak of $93,495 to $92,428 as profit-taking activities increase.
Market sentiment, currently marked by “extreme greed,” suggests a potential price reversal as traders lock in their gains.
Long-Term Holders Drive Bitcoin’s Rally
BeInCrypto’s analysis of BTC’s on-chain performance indicates a surge in coin distribution by long-term holders (LTHs), who typically hold their coins for more than 155 days.
According to Glassnode’s data, the Hodler Net Position Change hit a five-month low on Tuesday, reflecting the overall buying and selling activity of long-term Bitcoin holders. This decline indicates that the group sold over $3 billion worth of BTC on that day, marking their highest single-day sell-off since June 26.
BTC Transactions Remain Profitable
BTC transactions have been highly profitable over the past few weeks. The ratio of the coin’s daily transaction volume in profit to loss (using a 30-day moving average) is 2.01, meaning that for every BTC transaction that ends in a loss, 2.01 transactions return a profit.
BTC’s MVRV Ratio Indicates Overvaluation
BTC’s market value to realized value (MVRV) ratio suggests that the coin may be overvalued, prompting more holders to sell. Santiment’s data shows BTC’s current MVRV ratio is 182.06%, indicating that its current market value is significantly higher than its realized value. If all coin holders were to sell, they would, on average, realize a 182.06% profit.
BTC Price Prediction: Long-Term Holders Hold the Key
At press time, BTC trades at $92,428, slightly below its cycle peak of $93,495. If LTHs continue their profit-taking activity, BTC’s price could fall further from this high, potentially reaching support below $90,000. According to the coin’s Fibonacci Retracement tool, the next major support is at $83,983.
However, if selling activity stalls and new demand spikes, BTC’s price could reclaim the $93,495 all-time high and attempt to rally past it.
