Long-term Bitcoin (BTC) holders have started taking profits since the cryptocurrency’s price attempted to reach the $100,000 mark. As a result, the cryptocurrency’s price has retreated to $93,000.
Despite the recovery seen in the last few hours, the following on-chain indicators can help predict the next steps in the world's largest cryptocurrency.
Holders register profits from Bitcoin
According to CryptoQuant, Bitcoin’s long-term profit-to-exit ratio has risen to 2.86. This ratio measures the activity of long-term investors who have held their coins for more than 155 days.
When the ratio is above 1, it means that these holders are selling at a profit. On the other hand, if the profit-to-exit ratio is less than 1, it implies that the holders are selling at a loss. Since the reading is higher, it indicates that these holders are taking profits from the recent BTC rally.
Furthermore, it is important to mention that this profit-taking is the largest since August 30. If this continues, the BTC price is at risk of falling below the $93K threshold.
Bitcoin Holders’ Long-Term Profit-to-Exit Ratio. Source: CryptoQuant
Additionally, active addresses on the cryptocurrency’s network have decreased significantly this week, which could be problematic for the cryptocurrency’s price if the trend continues. Active addresses measure the number of unique addresses involved in transactions, reflecting users’ engagement with the blockchain.
When active addresses increase, it indicates growing network activity and adoption. Conversely, a decrease suggests reduced participation. As of November 26, active addresses were close to 1 million, showing significant traction.
However, the number had fallen to 768,000 by press time, a notable decline. If active address activity continues to decline, it could signal weakening market sentiment and contribute to further price declines, as highlighted earlier.
Active Bitcoin Addresses. Source: Santiment
Price Prediction: Time to Drop Below $90K?
On the daily chart, Bitcoin has fallen below the dotted lines of the Parabolic Stop and Reverse (SAR) indicator. This technical tool identifies support and resistance levels.
Dotted lines below the price signal strong support, while lines above the price suggest resistance that could lead to a decline. Currently, Bitcoin faces the latter scenario.
Bitcoin Daily Analysis. Source: TradingView
If this resistance holds, the price could drop to $84,640. However, if long-term holders reduce profit-taking, the cryptocurrency’s value could bounce back, potentially reaching $99,811.
The article Holders Start Selling Bitcoin: What to Expect Now? appeared first on BeInCrypto Brazil.
