Bitcoin (BTC) is on track to reach a historic milestone as its price approaches the $100,000 threshold. This notable price increase has fueled optimism among investors, affirming Bitcoin's dominant position in the cryptocurrency market.
However, despite the positive outlook, Bitcoin is not entirely immune to potential downward pressure. The factor that has maintained Bitcoin's price stability - long-term holders (LTHs) - is showing signs of wavering, raising concerns about the possibility of short-term price declines.
Recently, Bitcoin's long-term investors have exhibited signs of pessimism. The net position change indicator for HODLers, which tracks the behavior of LTHs, has turned negative.
This shift indicates that a significant number of long-term investors are taking profits. Negative values on this indicator usually signal a decline in confidence, which could put downward pressure on Bitcoin.
As LTHs are considered the backbone of Bitcoin's price, their selling activity could disrupt the market's upward momentum. This group of investors typically holds their assets through market fluctuations, contributing to price stability.
When they start selling, this can lead to increased price volatility. If this trend continues, it could trigger a price correction, especially as BTC approaches the $100,000 threshold.
Despite the short-term pessimism from LTHs, Bitcoin's macroeconomic drivers remain strong. An important indicator to watch is the Bitcoin Network Value to Transactions (NVT) Golden Cross, which is currently in neutral territory.
While not yet in the bullish zone (below -1.6), the NVT Golden Cross signal is still an important indicator for Bitcoin's future price trend. History shows that when the NVT indicator crosses into the pessimistic zone (above 2.2), the market often identifies this as a sell signal.
Currently, Bitcoin has not reached this pessimistic zone, suggesting there is still room for growth. The NVT Golden Cross signal continues to provide a positive signal, confirming that Bitcoin has enough momentum to continue its ascent before facing any significant downward pressure.
As long as the NVT indicator remains in neutral territory, Bitcoin has the opportunity to conquer the $100,000 threshold without immediately facing downward pressure.
Bitcoin (BTC) price is currently fluctuating around $96,572, approaching the historic $100,000 threshold. The cryptocurrency has recorded strong gains in recent weeks due to institutional interest and increasing adoption. If the current trend continues, Bitcoin could break this psychological barrier and reach a new high of $99,595.
If it surpasses the $100,000 mark, the next target could be $120,000. Successfully conquering the $100,000 milestone could trigger a stronger wave of buying from both retail and institutional investors. However, the risk from the profit-taking activities of LTHs remains a concern, as any significant sell-off could lead to a temporary correction.
Despite the short-term concerns, the overall trend for Bitcoin remains positive. The recent NVT Golden Cross signal suggests that the journey to the $100,000 level is still feasible. As long as Bitcoin maintains its support at critical levels, its long-term outlook remains optimistic.
While the selling activity from LTHs may cause some volatility, Bitcoin is likely to continue its growth trend in the coming months, barring any major disruptions in the market.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any investment decisions. We are not responsible for your investment decisions.
Join Telegram: https://t.me/tapchibitcoinvn
Twitter (X): https://twitter.com/tapchibtc_io
Tiktok: https://www.tiktok.com/@tapchibitcoin
SN_Nour
According to Beincrypto
