Long-Term Bitcoin Holders Shift from Accumulation to Distribution
Recent data suggests that long-term Bitcoin holders have transitioned from accumulation to distribution as the price approached $100,000. Here are the key insights:
Accumulation Phase Followed by Distribution
- Long-term holders accumulated assets from May to August 2024.
- However, they started distributing their holdings in late September.
Market Value to Realized Value (MVRV) Ratio Analysis
- The MVRV Ratio has entered the euphoria zone.
- Historically, this zone precedes market corrections.
- Current ratio indicates heightened speculative activity and potential price correction risks.
Bitcoin Price Movement
- Bitcoin surged to $98,200 on Nov. 21, nearing the $100,000 mark.
- Price retraced to around $97,000, indicating volatility.
- Current trading at $93,400 suggests a struggle to retest the $100,000 milestone.
The shift in long-term holder behavior and market indicators signal a potentially volatile period for Bitcoin as it approaches significant price levels.
