Bitcoin Price Analysis: Long-Term Holders’ Exit Raises Red Flags – Trouble Ahead?

This month, Bitcoin began with a long bearish candlestick, leaving the market struggling to rise above its opening price of October 1. A recent report from CryptoQuant suggests that Bitcoin could face short-term corrections. Want to know why? Let’s dive in!

Shifting Sentiments

The CryptoQuant analysis reveals a noticeable shift in behavior between long-term holders (LTH) and short-term holders (STH). The realized cap of long-term holders has decreased by $6 billion, while the realized cap of short-term holders has increased by the same amount.

This shift indicates differing market sentiments. The decline in the realized cap for long-term holders points to growing pessimism among this group. In contrast, the rise in the realized cap for short-term holders reflects increased optimism.

Realized Price and Market Rejection

The realized price reflects the value of Bitcoin when it was last moved. The chart, shared by CryptoQuant, shows that the BTC price experienced rejection at the Realised Price level. A rejection at this level is generally considered a sign of weakening momentum. Many see this as an early indication of an imminent short-term price correction.

Bitcoin Price Overview: A General Analysis

Bitcoin is currently priced at $62,195, down from its October 1 opening price of $63,302. The market briefly dropped to a low of $60,808. The ongoing Israel-Iran conflict has created uncertainty in the entire cryptocurrency market, further intensifying downward pressure on BTC.

A Warning Sign for Q4?

The departure of long-term holders from the Bitcoin market is a concerning trend. If this continues, it could dampen the optimism surrounding Q4 2024, which many had hoped would be a golden period for cryptocurrency. This analysis highlights the current challenges Bitcoin faces as it struggles to regain momentum.

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The Bitcoin market is a rollercoaster, and it’s anyone’s guess where it will land next. Stay tuned for updates!