Bitcoin is taking a breather, and it's the long-term holders who are playing a big role in keeping it steady, says analyst James Check. There's a common myth that those die-hard Bitcoin holders, known as HODLers, never sell. But surprise, surprise—they do! And right now, they're preventing prices from skyrocketing.
Since November 20th, Bitcoin has been stuck in a bit of a holding pattern, bouncing around the $95,000 mark. It hasn't hit a new all-time high yet, but it's still on a journey of discovery, thanks to those long-term holders easing off the gas pedal on selling pressure.
Think of the market as a car, where demand is the accelerator and selling pressure is the brakes. Demand is revving up, with folks like Michael Saylor and the emergence of spot Bitcoin ETFs fueling buying. But if the long-term holders are pressing the brakes just as hard, the car isn't moving forward much.
In November, Bitcoin raced up with a massive $26,000 surge to flirt with the $100,000 psychological barrier. This cooling-off period is like giving Bitcoin a breather to catch its breath and build a solid market structure.
Glassnode, a platform that watches the crypto market closely, has noticed that daily profits being cashed out have dropped by 42% since mid-November. This drop hints that the market is taking a pause to consolidate.
Bitcoin took a little dip to $93,700 on December 3rd when political tensions in South Korea flared up but bounced back to $96,000 during the Asian trading session. Analyst ‘Rekt Capital' observed that Bitcoin is testing its lower highs as support. As long as this continues, Bitcoin should be able to reclaim the $96,400 support area.
Elsewhere in the crypto world, the total market cap has soared to an all-time high of $3.67 trillion, with altcoins leading the charge. Binance Coin (BNB) is up 15% to hit a new high of $771, and Tron (TRX) has skyrocketed 68% to reach $0.43.
It's a wild ride in the crypto universe, and the long-term holders are keeping it interesting!
