Recent market data reveals that short-term Bitcoin holders were responsible for driving the majority of a massive $21.34 billion sell-off over the past 24 hours. According to Glassnode analytics, these newer investors accounted for $18.24 billion or 85.5% of the total spent volume, while long-term holders contributed only $3.10 billion representing 14.5% of sales.
This distribution pattern indicates that the current market pressure stems primarily from recent buyers rather than seasoned investors who have held their positions for extended periods. Short-term holders typically demonstrate greater sensitivity to market fluctuations and tend to lock in profits more quickly when opportunities arise.
Can't really believe I am saying it, but here we are.
Lettuce hands panic sold the most amount of #Bitcoin EVER yesterday in nominal terms to exchanges- almost $4B.
This leads to liquidation cascades and smart money picks up cheap coins.
I think we're done at a 10%… pic.twitter.com/W2UB6jspiL
— James Van Straten (@btcjvs) November 26, 2024
Profit Levels Reach Critical Threshold
Despite the significant selling activity, Glassnode data shows that over 90% of Bitcoin’s circulating supply remains profitable at current price levels. This figure represents the highest percentage recorded in more than a month and has consistently stayed above the 90% benchmark.
When such a large portion of the supply sits in profitable territory, the incentive for holders to realize gains increases substantially. Glassnode analysts point out that the +1-standard deviation for this metric sits at 91%, and a break below this level could potentially trigger a more significant market reset.
Technical Analysis Points to Key Resistance Levels
Market analyst Michael van de Poppe suggests that the recent downward movement has already cleared out weak market participants, potentially setting the stage for either a reversal or a return to the previous trading range. He identifies $116,800 as a crucial level that Bitcoin needs to reclaim to maintain its upward trajectory.
According to van de Poppe’s analysis, successfully breaking above $116,800 could lead Bitcoin toward establishing a new all-time high. However, failure to recover this level would likely confirm the current bearish pattern and could lead to further downside movement.
Additional technical analysis from @ali_charts highlights a significant support zone between $105,000 and $107,000. This range represents what many consider the final line of defense for maintaining current price levels. Volume profile data indicates substantial buying interest concentrated around this support area, which could help prevent more severe declines if the price approaches these levels.
Swissblock characterizes the current market condition as a “bearish pause” following a period of positive accumulation. Their analysis suggests that while macro and on-chain fundamentals remain stable, Bitcoin is currently trapped in a neutral-to-bearish pattern awaiting external catalysts that could drive the next major move.
Market Implications
The concentration of selling pressure among short-term holders suggests that institutional and long-term investors maintain confidence in Bitcoin’s trajectory. However, the high profit levels across the market create conditions where continued selling pressure could extend the current correction phase.
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