Bitcoin Correction Looms As Long-Term Holders Start Dumping Coins

Several prominent cryptocurrency analysts are sounding the alarm over an unusual spike in activity among long-term Bitcoin holders.according to cryptocon, The amount of old coins being used and transferred has increased significantly, suggesting that investors who have held Bitcoin for a long time are starting to sell.

This behavior is tracked using the “Coin Destruction Days” metric, which takes into account the number of coins moved and the length of time they were dormant before being moved. A high coin destruction date value indicates that a significant amount of BTC is being sold by long-term holders.

Historically, this kind of sell-off by long-term holders has coincided with Bitcoin’s cyclical market highs. Analysts point out that there are only a few examples of long-term holding sales of this size that did not result in a price ceiling. They were the bottom of the bear market in 2018 and a brief consolidation period in 2019.

According to analysts, this effect raises concerns about BTC’s short-term trajectory. Some have speculated that this could be a precursor sell-off ahead of all-time highs, but we fear it could be an early signal that the current bull cycle has reached an overheated peak and that a major correction is imminent from there. There are some people.

Impact on Bitcoin’s short-term trajectory

A crypto strategist said, egrag cipher, Similar to the 2017 market cycle, we expect Bitcoin to decline 30-40% in the coming weeks and months before the uptrend regains momentum. During the 2017 bull market, Bitcoin experienced several major corrections on its way to setting new record prices.

However, not all analysts are convinced that a major retrace is inevitable. Some are optimistic that Bitcoin will continue to rise further from current levels, allowing alternative cryptocurrencies such as Ethereum and Solana to see parabolic price increases against Bitcoin in the process. There is.

The coming weeks will likely be an important test for BTC. If the Pioneer cryptocurrency can shake off this round of profit-taking by long-term holders and break through stubborn resistance, the market could be encouraged for another big rally. However, a rejection from these levels could leave Bitcoin vulnerable to a longer-term decline.

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