The market for Bitcoin looks pretty shaky right now. After so many months of solid growth, it's like the wind has been blown away. And this isn't just a random drop - there's a little story behind it. Big companies are starting to sell, and that's changing the vibe. Let's analyze it.
LTH is selling big – why is this important?
Long term holders of Bitcoin (LTH) are doing something very rare – they are selling. And not just a few coins here and there. We are talking about over $3 billion worth of Bitcoin being sold in a single day. That’s huge, and the last time we saw something like this was in June.
Typically, LTH is held for a long time, so when they start to let go, it's a sign that they think it's a good time to cash out. The indicator tracking this, the change in net position of hodlers, is at its lowest level in five months. Something is definitely changing.
What does the chart say?
Now, let’s talk about the technicals. The price of Bitcoin is hovering around $91,952, but it was just over $93,000 not too long ago. So, it’s dropped a bit. The key support is at $83,983, and if Bitcoin falls below that level, things could get a bit trickier. On the other hand, if it breaks above $93,495, then maybe this isn’t the end of the run.
But if we look at the RSI (Relative Strength Index), it's kind of saying, "Hey, there's less momentum here. It's down to 55.91, which is not good. Also, the MACD indicator turned negative, which usually means bad news.
What about all the liquidation?
This is where things get interesting. Over 124,000 traders were liquidated in the past day, meaning they lost their positions. The total loss? A staggering $329 million. Many of these traders held long positions, betting that prices would continue to rise. So, as the market moved in the opposite direction, the bears began to take over.
What’s Next for Bitcoin?
Honestly, no one can be sure, but things are definitely looking a little uncertain. If Bitcoin continues to fall and breaks below the $83,983 level, there could be more pain ahead. But if it manages to bounce back and break above $93,495, perhaps we’ll see another leg up. For now, though, the market appears to be in some sort of holding pattern, and traders will be watching closely.