Bitcoin (BTC), the leading cryptocurrency, faces downward pressure after failing to sustain above the critical $105,000 resistance level. This threshold has consistently capped BTC's upward momentum, leading to increased volatility.
The sell-off intensified as long-term holders (LTHs) began liquidating their positions, exacerbating selling pressure and driving prices lower.
Long-Term Holders Trigger Market Downturn
Key metrics reveal a surge in Bitcoin's Liveliness—a measure tracking long-term holder activity—indicating significant sell-side pressure. This trend aligns with declining LTH balances and rising Coin Days Destroyed, reflecting movement of previously dormant BTC.
👉 Why long-term holders impact Bitcoin's price stability
Historically, LTH sell-offs correlate with bearish trends, as observed this week. Despite the downturn, fundamental indicators suggest potential recovery:
| Metric | Current Status | Implication |
|---|---|---|
| NVT Signal | Low | Undervalued relative to network activity |
| LTH Balances | Decreasing | Increased selling pressure |
BTC Price Outlook: Key Levels to Watch
Bitcoin's price dropped 3.88% in 24 hours to $100,682, influenced by:
- LTH liquidations
- Rejection at $105,000 resistance
Critical support levels:
$100,000 (Psychological/technical floor)
- Expected bounce or consolidation
- **$95,668** (Next support if $100K fails)
Bullish scenario:
A breakout above $105,000 could reignite momentum toward the all-time high of **$109,699**, contingent on:
- Improved market sentiment
- Macroeconomic catalysts
👉 How to navigate Bitcoin's volatility
FAQs
Q: Why did Bitcoin's price drop suddenly?
A: The decline stems from long-term holders selling their holdings and BTC's inability to break the $105,000 resistance level.
Q: What does the NVT Signal indicate?
A: The low NVT suggests Bitcoin is undervalued relative to its network transaction volume, potentially signaling a buying opportunity.
Q: Where might Bitcoin find support?
A: Immediate support lies at $100,000. A breach could lead to a test of $95,668.
Disclaimer: This analysis is for informational purposes only. Cryptocurrency markets are highly volatile—conduct independent research before making financial decisions.
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