Bitcoin has reached a crossroads – a potential recovery or a prolonged accumulation phase. Despite recent declines in BTC, long-term holders have been slow to purchase, and this silence could lead to trouble.
Bitcoin continues to hold the support level at $6,100. A recent report from AMBCrypto suggests that news of BTC miners migrating to Casper (KAS) could trigger more fear in the market.
An analyst claims that miners, after the halving, may sell assets to upgrade hardware or meet cash demands, but this might not have the severe impact on the market as expected.
So, are BTC holders ready for a price increase, or will selling pressure from elsewhere continue?
Concerns arise from insufficient demand and the behavior of long-term holders. Over the past two weeks, ETF flows have mostly been negative, with only the past two days alleviating selling pressure.
This implies a pessimistic sentiment among investors towards BTC, but it remains unclear if this sentiment is shifting or if it’s just a temporary relief before another wave of selling.
Cryptocurrency analyst Axel Adler observed on X (formerly known as Twitter) that there has been minimal change in the supply of long-term holders in recent weeks. The lack of growth in LTH indicates the overall market’s pessimistic sentiment.
The analyst also points out that profit supply is at a turning point. The threshold between optimism and pessimism has been reached.
In the past four years, whenever the supply of profit lines has been below this point, the market has entered a prolonged accumulation phase. This is accompanied by price declines and may dampen the optimistic expectations for BTC after the halving in May.
The age consumption output indicates significant fluctuations in the coins held by 7-10 year and 3-5 year holders in late May and mid-June.
This suggests that long-term holders are likely selling, which is a sign of lack of confidence.
This doesn’t guarantee further price drops, but it indicates that selling pressure has not yet subsided.