Bitcoin’s price has been moving slowly in recent days, and many investors are wondering why the cryptocurrency isn’t rising as quickly as expected. With Bitcoin hovering just below $100,000, some experts believe the reason behind its slower movement is linked to the behavior of long-term holders (LTHs). These holders, who have kept their Bitcoin for extended periods, may be selling off some of their holdings, which could be affecting the market’s momentum.

What’s Happening with Bitcoin?

Bitcoin’s price has recently been stuck in a narrow range. It reached as high as $97,000 on December 2 but then fell to around $94,000 shortly after. While it managed to recover slightly and trade above $96,000, the price has struggled to break past the $100,000 mark. For many, this lack of significant movement is disappointing, especially given the high hopes for Bitcoin to reach new highs.

Recent analysis suggests that long-term holders may be partly responsible for the slow price action. These investors, who have held their Bitcoin for over 155 days, are now taking profits. When long-term holders sell their Bitcoin, it increases the supply of coins on the market, which can push the price down in the short term. This kind of behavior can lead to a temporary consolidation phase, where Bitcoin’s price moves sideways rather than up.

Why Are Long-Term Holders Selling?

According to data from a platform called Alphractal, long-term holders have been selling significant amounts of Bitcoin at a profit. This has added selling pressure in the market, which has likely contributed to the current slowdown in Bitcoin’s price. The SOPR (Spent Output Profit Ratio) indicator, which tracks whether Bitcoin holders are selling at a profit or loss, shows that many long-term holders are choosing to sell now that they are in profit.

Moreover, data from the Long Term Holders NUPL Heatmap suggests that many of these holders have seen significant gains since late 2023. This has led to more profit-taking, which could continue for a while. Historically, these selling periods, called “distribution phases,” can last for several months. During this time, long-term holders often sell their Bitcoin when the market is in a bullish phase, which means that the market could be experiencing a temporary slowdown before the next big price movement.

Could Bitcoin’s Price Break Out Soon?

Despite the selling pressure from long-term holders, there are signs that Bitcoin’s price could break out in the near future. Some technical indicators suggest that the cryptocurrency is moving within a bullish ascending triangle pattern. This pattern is often seen before a big price move. If Bitcoin manages to break above the upper boundary of this pattern, it could trigger a new rally that pushes the price higher.

Additionally, the Relative Strength Index (RSI), which measures buying pressure, has been rising. This is a sign that more people are starting to buy Bitcoin, which could help push the price upwards. Bitcoin’s Seller Exhaustion Constant, a metric that tracks the amount of selling pressure, has also started to decrease. This could mean that the selling from long-term holders is slowing down, which might make room for buying pressure to take over.

Will Bitcoin Reach $100,000?

Despite the current consolidation, Bitcoin could still make a strong push toward the $100,000 mark. The Pi Cycle Top Indicator, which analyzes Bitcoin’s price movements, suggests that the cryptocurrency could eventually top out around $124,000. If profit-taking decreases and buying pressure increases, Bitcoin could see a surge in the coming weeks. The price movement in the short term may be quiet, but the longer-term outlook remains positive, with the potential for Bitcoin to reach new all-time highs.

Conclusion

Bitcoin’s recent price struggles are likely linked to long-term holders taking profits, which has increased selling pressure in the market. However, there are signs that Bitcoin could soon break out of its consolidation phase. With technical indicators showing a bullish pattern and buying pressure starting to rise, Bitcoin could be preparing for its next big move. If the selling from long-term holders slows down, Bitcoin may soon find itself on a path toward the $100,000 mark or even higher.