Bitcoin has recently returned to a price range where massive sales limited rallies last year. The analysis firm Glassnode pointed out that profit-taking by long-term holders is occurring at a much slower speed. This behavior suggests a much less aggressive distribution phase for the market, according to the most recent expert reports.
Data reveals that these veteran investors reduced their weekly sales from 100,000 BTC to only 12,800 units. This figure represents considerable relief for bulls looking to overcome significant resistance levels today. Therefore, weekly selling pressure has dropped drastically in recent times for the asset. Additionally, the crypto market observes a lower discharge of assets by these large holders.
The digital asset has re-entered the historical sell zone located at 93,000 dollars. It is precisely at this level where a large volume of previous accumulated transactions is concentrated. Likewise, structurally overcoming this price level is a fundamental requirement to continue the ascent. Also, technical analysis highlights the importance of consolidating these levels in the short term.
The path to stability depends on the resilience of the veteran supply
During November, several recovery attempts failed due to the strong selling pressure detected. However, the current situation seems to be different because of the coin exit rhythm. In this way, the absorption of veteran supply is necessary for recovery of the entire ecosystem. On the other hand, investors are demonstrating greater strategic patience during this month of January.
The recent 10% increase in price has tested the profit-taking by long-term holders recently. These movements occur while the network remains highly active with constant institutional transactions. Therefore, support levels are strengthening in the face of change in supply dynamics. Likewise, this moderation in sales could catalyze new highs in the coming weeks.
Can geopolitical tensions stop the current bullish momentum of Bitcoin?
There is a latent risk related to growing tensions between the United States and Iran currently. These conflicts usually generate generalized risk aversion in financial markets around the entire world. Therefore, an unexpected geopolitical event could force a price drop quite suddenly. However, the infrastructure of this blockchain continues to show unmatched security in the face of crises.
The current moderation in coin distribution suggests a positive change in general sentiment. If demand continues to absorb the 12,800 BTC weekly, the price could stabilize above one hundred thousand. On the other hand, future perspectives depend on the stability of the macroeconomic environment worldwide. In this way, monitoring on-chain activity will be key for all investors.
