Bitcoin's latest pullback amid wider macroeconomic uncertainty, likely hasn't rebounded to its all-time high (ATH) of $109,000 in January, analysts said.
“We need to assume we are in the pull-back phase after the ATH. Due to liquidity needs, we may continue to integrate for some time,” CryptoQuant contributor XBTManager said in an analyst note on March 5th.
Bitcoin will bid “executable” when long-term holders return to purchase
XBTManager said that the long-term position will be “viable” once short-term holders of Bitcoin (BTC) (holders less than 155 days) begin selling and long-term holders start purchasing again.
Until then, they said that traders should be risk aversive when they enter positions within their assets.
“We need to be careful over the next few months and avoid very dangerous transactions.”
Bitcoin first hit $109,000 on January 20th, and before US President Donald Trump's inauguration, short-term holders began increasing supply, while long-term holders began to cut supply through sales.
Bitcoin high on January 20th resulted in a drop of around 100,000 BTC in long-term holder supply over the next 30 days, but a much larger decline continued in December, reaching the first six-figure.
Bitcoin has fallen by 1.43% over the past seven days. sauce: coinmarketcap
According to Bitbo data, on December 1st, the supply of long-term holders reached 15.2 million BTC just four days before Bitcoin reached $100,000 on December 5th. By December 20th, the number had decreased to 14.7 million.
Related: Bitcoin is no longer a “safe shelter” as $82K BTC price dives remain at the top
At the time of issuance, long-term holder supply was 14.4 million BTC, a decline of 800,000 BTC since December 1st.
Bitcoin fell below $100,000 on February 4 amid concerns over a trade war with Trump's promised tariffs. The market dwindled further to $85,000 at the Wall Street Open on February 27th.
sauce: Timothy Peterson
Later that day, the assets fell below the critical $80,000 price level, wiping almost all profits after Trump was elected president on November 5th.
According to CoinMarketCap, Bitcoin was trading for $87,100 at the time of publication.
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This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
