After Bitcoin reached an all-time high of $99,645 on November 22, it plummeted over 6% in just a few days, with correction pressure gradually emerging. Why couldn’t it break through the $100,000 threshold in one go? The main reason is the profit-taking selling pressure that emerged after the significant price increase.
Glassnode data shows that on November 21 alone, investors sold off Bitcoin worth $10.5 billion, setting a record for the highest profit-taking amount in a single day.
The main source of this selling pressure seems to be 'long-term holders', referring to investors who have held Bitcoin for more than 155 days. They are often regarded as 'smart money', typically entering the market when prices are low and then selling for profit when market sentiment is extremely euphoric.
According to Glassnode data, between September and November this year, long-term holders cumulatively sold off 549,000 Bitcoins, accounting for 3.85% of the total holdings of that investor group, and this selling pressure was extremely heavy, even surpassing the buying power of large institutions like MicroStrategy and Bitcoin spot ETFs.
CoinDesk senior analyst James Van Straten estimates that long-term holders may still have up to 163,000 Bitcoins of selling pressure that has yet to be released, making it difficult for the market to catch its breath in the short term.
"Long-term Bitcoin holders are experiencing a 'profit-taking wave'! Analysis: Selling pressure has not yet been fully released" This article was first published on (BlockKe).
