27.01.2025 13:33
The price of Bitcoin (BTC) has dropped to the critical threshold of $100,000 due to sales by long-term holders. The inability of BTC to surpass its resistance level and its decline below $100,000 has also caused significant losses in the prices of other cryptocurrencies.
The leader of the cryptocurrency market, Bitcoin, experienced a sharp decline after failing to break the critical resistance level of 105,000 dollars. The recent increase in sales by long-term investors has intensified the pressure on prices, causing Bitcoin to drop to the 100,000 dollar level. The historical low levels of the Network Value to Transactions (NVT) Signal indicate the market's potential for recovery.
Sales by Long-Term Investors Deeply Affected the Market
The pioneering asset of the cryptocurrency market, Bitcoin, entered a decline after getting stuck at an important resistance point following its recent rise. The world's largest cryptocurrency faced selling pressure after failing to hold above the critical level of 105,000 dollars.
The most significant factor deepening the market's decline was the long-term investors (LTH) starting to sell their Bitcoins. Recent technical analyses reveal that LTHs, whose patience has run out, are liquidating their assets. This movement, tracked by the Bitcoin Liveliness metric, is confirmed by a decrease in long-term investor balances and other important data.
The sales of long-term investors, who play a key role in the market's stability, created serious pressure on Bitcoin prices. This situation caused the decline that started over the weekend to continue today.
However, Bitcoin's macroeconomic indicators still offer hope for recovery. In particular, the historical low levels of the Network Value to Transactions (NVT) Signal indicate that the cryptocurrency is undervalued compared to its trading volume and has potential for future increases. Nevertheless, despite this positive indicator, the overall market conditions need to improve for Bitcoin to recover. The fact that investors have not yet entered a permanent downward trend suggests that investor confidence could quickly return with positive economic developments or improvements in market conditions.
In the last 24 hours, Bitcoin's value has decreased by 3.88%, dropping to 100,682 dollars. This decline was influenced by both the sales of long-term investors and the inability to remain above the 105,000 dollar resistance. Currently, the critical support level is at the psychologically and technically significant 100,000 dollar mark. Bitcoin may initiate an upward movement from this level or stabilize in this region for a while. However, if it falls below 100,000 dollars, the decline could extend to 95,668 dollars, and selling pressure may increase.
On the other hand, if market conditions improve and Bitcoin breaks the 105,000 dollar resistance, the decline scenario will lose its validity. In such a case, it seems possible for Bitcoin to head towards its all-time high of 109,699 dollars, restoring investor confidence and starting a new wave of increases. Finally, at the time of writing this news, the price of Bitcoin has dropped to around 99,000 dollars.