Golden Finance reports that the dynamics of the cryptocurrency market are always on the minds of investors. As the leading cryptocurrency, the price trend and market trading situation of Bitcoin (BTC) are particularly closely watched. According to the latest data disclosed by CryptoQuant analyst Axel Adler Jr, within the past 24 hours, short-term holders sold an average of approximately 21,000 Bitcoins through centralized exchanges (CEX). This amount of selling is at a relatively low level compared to the historical average level of selling pressure. This phenomenon indicates that although the price of Bitcoin has shown an upward trend recently, short-term holders are currently in a relatively calm state and are not as eager to lock in profits on a large scale as before when the price rises.
Under normal circumstances, when the price of Bitcoin rises, short-term holders often sell off a large amount of the Bitcoin they hold in order to cash in. For instance, in some past market conditions, when the price of Bitcoin rose rapidly within a short period of time, the selling behavior of short-term holders would lead to an instant increase in the supply of Bitcoin in the market, which in turn exerted downward pressure on the price and triggered a price correction. However, the low selling situation within the past 24 hours has broken this conventional expectation. This might imply that market participants hold a more optimistic attitude towards the future trend of Bitcoin. Short-term holders are willing to continue holding Bitcoin, expecting the price to rise further to obtain higher returns. Or perhaps they have their own judgment on the current market risks and believe that it is not the best time to sell at present.
Analyst Axel Adler Jr also pointed out that $120,000 will become the next psychological milestone for many market participants. In the cryptocurrency market, integer price levels often hold special significance. Whenever the price of Bitcoin approaches these key integer digits, the market reaction is usually quite intense. As the price of Bitcoin gradually approaches the $120,000 mark, profit-taking activities are likely to increase significantly. Looking back at the price history of Bitcoin, similar reactions have been observed many times whenever it reaches a similar integer price level. For instance, when the price of Bitcoin first approached the $100,000 mark, a large number of investors believed that the upward space for the price was limited and chose to sell off their Bitcoins one after another, which led to significant fluctuations in the market and a certain degree of price correction. As the psychological threshold of $120,000 approaches this time, whether the market will repeat a similar profit-taking scene is worth investors’ close attention.
For investors, the current situation in the Bitcoin market presents both opportunities and challenges. On the one hand, the low selling by short-term holders provides certain support for the stable rise in Bitcoin’s price. If investors are optimistic about the long-term prospects of Bitcoin, they may consider entering the market at a reasonable time or continuing to hold it. On the other hand, as the psychological milestone of $120,000 approaches, the potential risk of profit-taking is gradually accumulating. Investors need to carefully assess their risk tolerance and reasonably adjust their investment portfolios to cope with possible market fluctuations. For the entire cryptocurrency market, Bitcoin, as a barometer, its price trend and trading dynamics will continue to influence the overall market sentiment and capital flow. Its subsequent development is worth the continuous attention of all market participants.
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