Following its recent display of positive momentum, the price of Bitcoin returning to six-figure valuation has been the most popular narrative in the cryptocurrency market. However, the latest on-chain data suggests a relevant class of investors might pose a threat to the premier cryptocurrency’s dream of reclaiming $100,000.
A Successful $100K Break Could Open Path To Price Discovery: Glassnode
In a May 2 post on X, blockchain analytics firm Glassnode shared an insight into the behavior of the Bitcoin long-term holders (LTH) and how it could impact BTC’s price trajectory over the next few days. Long-term holders refer to investors who have not moved their coins for more than 155 days.
According to the latest on-chain data, Bitcoin long-term holders have been in an accumulation phase in recent weeks, with more than 254,000 BTC aging beyond 155 days since the recent price low. Glassnode added that most of these investors purchased their coins above the $95,000 price level.
With the total supply held by these Bitcoin long-term investors on the rise, it implies that their spending has remained minimal and light — even in the face of bearish pressure and the uncertain market condition in the past month. This positive trend signals renewed confidence and the LTHs’ lack of interest in reducing their exposure in the market.
Source: @glassnode on X
Glassnode, however, noted that long-term holders often begin distributing their coins around 350% unrealized profit margins, which corresponds with a Bitcoin price of approximately $99,900. With the BTC price closing in on this level, the analytics firm believes that increased sell-side pressure might be on the horizon for the flagship cryptocurrency.
Furthermore, Glassnode revealed that a large chunk of coins was purchased within the $95,000 – $98,000 region, leading to the formation of a supply barrier. The Bitcoin price could witness significant downward pressure if investors with their cost bases within this region decide to exit at breakeven or after a little profit.
The analytics firm concluded that the potential sell-side pressure from the large BTC supply in the $95,000 – $98,000 region and from the long-term holders distributing their coins around the $99,900 level creates a major resistance barrier. However, a successful breach of the $100,000 mark could “open the path to price discovery,” as the coin supply above this price level is relatively light.
Bitcoin Price At A Glance
As of this writing, BTC is valued at around $96,500, reflecting a 0.4% price decline in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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