Bitcoin LTH Data Hints When Price Could Hit Next ATH

Bitcoin recently reached a new All-Time-High (ATH), which has reignited optimism in the cryptocurrency community. However, as the price approaches this new high, investor skepticism is increasing.

Some investors are taking profits, creating uncertainty about whether this price surge can be sustained. The question is: can Bitcoin continue its price momentum, or is the current price action a sign of things to come?

Bitcoin Investors Remain Hesitant

Bitcoin Liveliness, an important indicator for tracking long-term holder (LTH) activity, has reached its highest level in nearly four years. This increase in Liveliness suggests that long-term holders are beginning to sell, signaling they may be taking profits from Bitcoin's recent price surge.

LTHs are typically considered the cornerstone of Bitcoin's price stability, and their selling behavior often indicates that investor sentiment is shifting towards doubt.

When LTHs decide to sell, it usually marks a turning point in the market. Their selling can lead to increased market volatility and potential price correction. With many LTHs leaving the market, Bitcoin faces additional pressure that could hinder short-term price growth.

The growth of new Bitcoin addresses has been highly volatile this month. The number of new addresses peaked early in the month, but currently, the red bars on the chart show a significant decline.

The slowdown in address growth suggests fewer new investors are entering the market, and some current holders are choosing to leave. This could indicate a wallet cleansing, a movement typically seen during periods of increasing doubt.

Compared to April, address growth has been more volatile this month. As Bitcoin's price rises, investors become more cautious and focus on protecting their profits.

The volatility in new address growth reflects uncertainty surrounding Bitcoin's future price action, with investors still concerned about the long-term sustainability of this price surge.

BTC Price Not Far from ATH

Bitcoin's price is currently $106,708, just under 5% from its ATH of $111,980, reached last week. However, the path to reaching this level again depends heavily on how investors react to current market conditions.

If doubt and selling continue, Bitcoin may struggle to regain its price momentum.

If the price continues to drop, Bitcoin may face difficulties in recovering. Breaking below the support level of $106,265 could lead to further price decline, potentially pushing the price down to $105,000 or even $102,734 in the short term.

However, if Bitcoin maintains support above $106,265 and sees renewed buying interest, it can easily neutralize the bearish outlook. Breaking through the resistance level of $110,000 would provide the necessary momentum to surpass $111,980, paving the way for a new ATH.