Long-term holders of bitcoin (BTC), who have been significant contributors to the selling pressure in the market, appear to have paused their selling activities, helping the price of the largest cryptocurrency break through the psychological $100,000 resistance level and establish it as support.
Since January 17, bitcoin has remained above the $100,000 mark, with one brief exception, despite heightened volatility following President Donald Trump’s inauguration. This price stability follows a period of aggressive selling by long-term holders, who typically hold their bitcoin for over 155 days and are considered “smart money” due to their strategy of buying when prices are low and selling during periods of strength.
According to CoinDesk research, long-term holders controlled 14.2 million BTC in September, but that number has since dropped to 13.1 million. While these investors have slowed their sales since the start of the year, recent price increases have seen some renewed selling, albeit at a reduced rate.
The key trend to monitor is when long-term holders stop selling, as this often marks the peak of the market cycle, a pattern observed in previous cycles in 2013, 2017, 2021, and now potentially in 2024.
