In recent weeks, Bitcoin and the broader cryptocurrency market have experienced a notable surge following a series of corrections and previously lower prices in 2024. Momentum picked up significantly last Friday when Jerome Powell, Chairman of the Board of Governors of the Federal Reserve System, hinted at a potential interest rate cut in September. This policy shift has injected optimism among investors, driving increased market activity.
Adding to the buoyant market sentiment, Glassnode’s data reveals that long-term holders (LTH) of Bitcoin are consistently locking in gains of $138 million in profit per day. This raises the question: what does this mean for the future market?
Bitcoin long-term holders have been making steady profits even amid market volatility and uncertainty. According to the Bitcoin Long-Term Holder Net Realized Profit/Loss chart from Glassnode, LTH are currently selling Bitcoin at a rate of approximately $138 million per day. This selling pressure acts as a crucial benchmark, indicating the volume of new capital that needs to flow into Bitcoin daily to counterbalance the selling and stabilize the price.
If daily inflows into Bitcoin fall short of this $138 million benchmark, the price could face downward pressure due to ongoing sales by LTH. This dynamic highlights the delicate balance between buyer demand and the profit-taking activities of long-term holders.
As the market navigates this phase, Bitcoin’s price action in the coming weeks will be particularly interesting to watch. Whether new investor inflows can match or exceed this selling pressure will be key in determining Bitcoin’s next major move.
At the time of this writing, Bitcoin is trading at $64,360. This represents a recovery from a recent low of $49,577 just 20 days ago, following weeks of aggressive selling pressure, fear, and uncertainty. Now, Bitcoin is approaching the $65,000 mark after two consecutive daily candles closed above the crucial 200-day moving average. This is a key indicator used by investors to identify market structure as either bullish or bearish.
The close above the 200-day moving average at $63,326 suggests that Bitcoin is regaining strength. However, it must hold above this indicator and ideally test it as support to sustain the uptrend. If Bitcoin can maintain this level, breaking past $65,000 should be a straightforward task, with the next target likely around $67,000. Conversely, if the price fails to hold above the 200-day moving average near $63,000, Bitcoin may retest local demand levels around $60,000.