Bitcoin (BTC) has fallen from its all-time high of $93,495 and is currently trading at $92,428. This is happening as profit-taking accelerates.
The market sentiment is indicated as "extreme greed," which suggests the possibility of a price reversal as traders increasingly lock in their gains.
Bitcoin Price Surge Prompts Long-Term Holders to Sell
According to BTC on-chain performance evaluation by BeInCrypto, the distribution of coins by long-term holders (LTHs) has surged. They are typically defined as investors who have held their coins for more than 155 days.
Data from Glassnode shows that the Hodler Net Position Change of coins hit a 5-month low on Tuesday. This metric reflects the overall buying and selling activity of long-term Bitcoin holders. This decline indicates that this group sold around $3 billion worth of BTC that day, the largest single-day sell-off since June 26.
Notably, BTC trading has been quite profitable in the past few weeks. Currently, the daily transaction profit-to-loss ratio (using a 30-day moving average) for the coin is 2.01. This means that for every BTC trade that resulted in a loss, 2.01 trades generated a profit.
Additionally, the market value to realized value (MVRV) ratio of BTC suggests the coin may be overvalued, prompting more holders to sell. According to Santiment data, the current MVRV ratio for BTC is 182.06%.
The 182.06% BTC MVRV ratio indicates that the current market value is significantly higher than the realized value. Therefore, if all coin holders were to sell, they would realize an average profit of 182.06%.
BTC Price Forecast: Depends on Long-Term Holder Movements
Currently, BTC is trading at $93,647, which is over 2% above the daily low of $91,300. If LTHs continue their profit-taking activity, the price of BTC is likely to decline further from this high point towards the $90,000 support level. According to the coin's Fibonacci retracement tool, the next major support level is formed at $83,983.
However, if the selling activity stalls and new demand increases, the price could recover the all-time high of $93,905 and attempt to rise even further.
