Bitcoin long-term holders began transitioning from accumulation to distribution as the price approached $100,000. According to data on the Long-Term Holder Supply Net Position Change, holders started distributing their assets in late September 2024 after accumulating between May and August. The net position change suggests that long-term holders were net sellers from March to May due to profit-taking.
This was followed by an accumulation phase, which likely contributed to price increases by reducing market supply. The recent distribution indicates that holders are now realizing profits as Bitcoin approaches the six-figure mark. Additionally, the Market Value to Realized Value (MVRV) Ratio has entered the euphoria zone, historically associated with overheated markets.
When the MVRV Ratio exceeds its upper threshold, it often precedes corrections, as seen in previous peaks. The current ratio implies increased speculative activity and potential risk of a price correction for Bitcoin. Bitcoin’s price surged to $98,200 on November 21 before retracting back down around $97,000 – just 3% shy of the $100,000 milestone.
The appreciation followed events like the U.S election results in November 2024 and the halving in April. As of press time, Bitcoin is struggling to retest the $100K milestone while trading at approximately $93,4K.
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<p>The post CryptoShifts: Bitcoin’s LTH Profit-Taking Amid Euphoria Ratio first appeared on CoinBuzzFeed.</p>
