Bitcoin shows mixed price movements in the latest sessions, with sharp fluctuations and cautious attempts at recovery. BTC rebounded after a brief decline, but the momentum remains weak.
A major point of concern is the declining trust among one of the most influential groups within Bitcoin, which may make it difficult to maintain a broader price recovery.
Bitcoin holders see a decline in profit
Bitcoin long-term holders have sold more in recent days. On-chain data shows that the change in the amount of coins held by this group has dropped to its lowest level in 20 months over the past 30 days.
The last time this level was reached was in April 2024, indicating increased selling pressure.
This behavior suggests that long-term holders are reducing their position to protect realized profits. As their unrealized profits decrease, they tend to sell faster to avoid losses. Such actions often create more pressure on price recovery, as supply increases without an immediate rise in demand.
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Macro indicators provide additional context. The metric ‘long-term holders net unrealized profit or loss’ has dropped to a monthly low. This shows that the profits in this group are decreasing, making them more sensitive to further declines.
Historically, a declining LTH NUPL metric often leads to more defensive selling. But once this indicator drops further, selling pressure usually decreases again.
At that level, long-term holders usually stop selling, and the Bitcoin price can stabilize and possibly recover as demand increases.
Bitcoin is around $87,900 at the time of writing, and remains below the resistance of $88,210. The coin recently made a jump after briefly dropping below the support of $86,247. This recovery shows that buyers at lower levels are still active, but confidence remains cautious.
A brief rise towards $90,308 is possible. But resistance just before that may limit further gains. As long-term holders continue to sell, Bitcoin may continue to hover around the $88,201 zone while the market processes the extra supply.
The chance of a rise increases if long-term holders change their stance. Fewer sales lead to less downward pressure.
In that case, Bitcoin could break through $90,308 and reach the target of $92,933. Such a rise would invalidate the bearish scenario and show new confidence among key market players.
