Bitcoin Faces Resistance at $73k as Long-Term Holders Increase Distribution Pressure

The top crypto

is facing resistance at the latest all-time high price of up to $73k. Subsequently, the long-term holders of the token have increased the overall distribution pressure while the market is presently giving a per-day realized profit of $2.6B. The crypto coin has recently gone through a massive uptrend over the past couple of weeks.

As the #Bitcoin market hits resistance at a new ATH of $73k, the Long-Term Holder cohort have ramped up their overall distribution pressure.

The market is currently seeing over $2.6B/day in realized profit, as investors start to take chips off the table.

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— glassnode (@glassnode) March 26, 2024

Long-Term BTC Holders Maintain Their Market Dominance for Another Time

In addition to this, Bitcoin has corrected as well as consolidated beyond the $61k spot. The prices of the token then pulled back by nearly -15.4% from the latest $73.1k. This is the exclusive all-time high of BTC that took place on the 13^th of this month. Following the respective correction, it reached $61.8k on the 20^th of March before jumping again.

As a result of this price spike, the token touched $70k for another time. Both the distance and duration of the token’s price performance were reportedly identical in 2021 and 2020. The respective cycle took place in 2020’s December and 2021’s April. Previous instances have ignited several interesting speculations regarding resistance. In line with that, a few BTC investors began taking profits.

As prices descended from $73k to $61.2k, a cumulative 2.0 million Bitcoin shifted from profit to loss. However, the market rebounded to $66.5k and 1.0 million tokens again gained the ‘in-profit’ position. A great number of the 2.0 million tokens having a cost of more than $61.2k have just changed hands. While the market touched $73.2k, a realized profit of more than $2.6 billion got locked in through on-chain spending.

Repetition of Price Spikes Suggests the Start of Bitcoin’s ‘Euphoria Phase’

Nearly forty percent of the respective profit deals with the long-term holders, including investors coming from the GBTC Trust. The short-term holders locked the realized profit of another $1.56 billion while leveraging the inflowing liquidity. Quite a similar situation occurred during the bull market of 2021. In the case of the profit-taking incidents, the long-term BTC holders reportedly establish dominance.

The respective pattern is just like Bitcoin’s behavior in the former cycles. The data also suggests that the token’s older supply has begun to transact, be revalued, and change hands. This is potentially paving the way for Bitcoin’s ‘Euphoria Phase’ as seen in prior bull markets.

Tags: BTC