- Bitcoin reached $111,271 with analysts warning of ongoing holder sell-offs.
- Realized profits hit $1.7B daily as older coins re-enter circulation.
- Analysts expect stability above $108K could drive Bitcoin beyond $120K soon.
Bitcoin recorded a sharp price increase, climbing from $108,684 to $111,271 in a few hours, according to TradingView data shared by Vivek4real. The cryptocurrency’s fast rise raised speculation that it might test the $120,000 mark soon. However, analysts say the current rally faces resistance as long-term holders continue taking profits.
Analyst James Check stated that the recent slowdown in Bitcoin’s broader momentum was not due to manipulation or “paper Bitcoin,” but rather strong selling from existing holders. “The failure of crypto markets to recover was not due to manipulation… just good old-fashioned sellers,” he said.
Long-Term Holders Realize Record Gains
Checkonchain data shows that older Bitcoin wallets have been realizing substantial profits, with realized gains reaching $1.7 billion per day. Meanwhile, realized losses also climbed to $430 million daily, the third-highest level this cycle.
Check noted that the average age of spent coins has been increasing, suggesting long-term investors are actively selling. “The sheer volume of sell-side pressure from existing holders is still not widely appreciated,” he added. The revived supply from older coins also reached $2.9 billion daily, its second-highest level ever recorded.
Crypto investor Will Clemente said that much of the recent weakness in Bitcoin’s price was due to a supply shift from “OGs” to institutional players. “This dynamic will be mostly irrelevant in the coming years,” Clemente explained.
Analysts Expect Recovery After Selling Pressure Subsides
Galaxy Digital CEO Mike Novogratz commented that many early Bitcoin investors were finally cashing out after years of holding. “There are a lot of people in the Bitcoin world who had rode this so long and finally decided, ‘I wanna buy something,’” he said.
Despite the selling, Bitcoin maintained key support levels, closing the week around $108,700. Analyst Rekt Capital suggested that holding above this level could lead to a potential rally beyond $120,000. At press time, Bitcoin traded above $111,000, with traders watching closely for signs of renewed upward momentum.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
