Bitcoin (BTC) Nears $100K Amidst Long-Term Holders' Distribution

Bitcoin is on the brink of reaching the elusive $100,000 mark, following a series of new all-time highs, according to Glassnode. This surge in price has prompted Long-Term Holders (LTHs) to significantly increase their distribution, capitalizing on the profitable market conditions.

Intense Long-Term Holder Distribution

Amidst the rally, LTHs have distributed 507,000 BTC, marking a substantial turnover of assets. Although this volume is less than the 934,000 BTC offloaded during the March 2024 peak, it remains notable. The distribution reflects a strategic move by holders to leverage the increased liquidity and demand.

Currently, about 0.27% of LTH supply is being sold daily, surpassing previous highs in March. This suggests a more aggressive distribution strategy, with a significant portion of the sell-side pressure originating from coins aged between six months and one year.

Profits Locked In

Long-Term Holders are realizing unprecedented profits, with daily realized profits reaching $2.02 billion, a new all-time high. This profit-taking requires a robust demand to absorb the excess supply, potentially necessitating a period of re-accumulation to stabilize prices.

The distribution patterns indicate a strategic profit-taking approach, with significant contributions from coins acquired relatively recently. This behavior points to swing-trade strategies, where investors capitalize on market fluctuations post-ETF launches.

Gauging Sustainability

The current upward trend's sustainability can be evaluated by comparing it to the March 2024 all-time high. During the previous cycle, supply clusters between $40K and $73K became significant support zones. Presently, the rapid price increase has left few transactions between $76K and $88K, suggesting potential volatility in these ranges.

As the market seeks equilibrium, changes in supply distribution will offer insights into potential demand zones. The Sell-Side Risk Ratio indicates substantial profit-taking, yet remains lower than previous cycle peaks, suggesting room for further absorption of supply.

Overall, the ongoing distribution by Long-Term Holders underscores the dynamic interplay of demand and supply as Bitcoin edges closer to the $100,000 milestone.

For more information, see the original report on Glassnode.