Following recent positive momentum displays, Bitcoin prices return to six-digit ratings, were the most popular stories in the cryptocurrency market. However, the latest on-chain data suggests that investors in the relevant class could pose a threat to their dream of the best cryptocurrency, which is to regain $100,000.
A successful $10,000 break will pave the way to price discovery: GlassNode
In a May 2 post on X, blockchain analytics firm GlassNode shared insights into the behavior of Bitcoin long-term holders (LTH) and how it will affect BTC price trajectory over the next few days. Long-term holders refer to investors who have not moved coins for more than 155 days.
According to the latest on-chain data, long-term Bitcoin holders have been in the accumulation stage in recent weeks, with 254,000 BTC aging, more than 155 days of the recent low price. GlassNode added that most of these investors purchased coins above the $95,000 price level.
The rise in total supply held by these long-term Bitcoin investors means that their spending remains minimal and light in the face of bear pressure and uncertain market conditions over the past month. This positive trend indicates the lack of interest in updating confidence and reducing market exposure.
Source: @glassnode on X
However, GlassNode noted that long-term holders often begin to distribute profit margins that are around 350% unrealized, and are serving a Bitcoin price of around $99,900. With the price of BTC concluded at this level, the analytics firm believes that an increase in sell-side pressure on flagship cryptocurrency could be on the horizon.
Additionally, GlassNode revealed that large amounts of coins are purchased within the area between $95,000 and $98,000, leading to the formation of supply barriers. Bitcoin prices could witness considerable downward pressure if investors with a cost-based base within the region decide to leave at Breakeven or make a small profit.
The analytics company concluded that potential seller pressure from large regional BTC supplies between $95,000 and $98,000 creates a major barrier to resistance from long-term holders distributing coins to the $99,900 level. However, a successful violation of the $100,000 mark could “pave the way to price discovery” as the supply of coins above this price level is relatively light.
Bitcoin price at a glance
At the time of this writing, BTC is valued at around $96,500, reflecting a 0.4% price drop in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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