Bitcoin recently hit a new all-time high of $108,786 but has since experienced a correction
Profit-taking volumes have decreased 93% from December’s peak of $4.5B to around $316.7M
Small investors (holding <10 BTC) bought 25,600 BTC in the past month, outpacing miner production of 13,600 BTC
Bitcoin is currently trading below $104,500 with key support levels at $101,750 and $100,500
Long-term holder selling pressure has decreased, suggesting potential market stabilization
Bitcoin’s recent price action has shown interesting developments as the cryptocurrency stabilizes around the $104,000 level after reaching a new all-time high of $108,786. The market has entered a period of reduced selling pressure, with profit-taking volumes dropping by 93% from their December peak.
Data from blockchain analytics firm Glassnode reveals that profit-taking has decreased from $4.5 billion in December to approximately $316.7 million in recent weeks. This sharp decline suggests a notable reduction in selling pressure from existing Bitcoin holders.
The cryptocurrency has been trading within a tight 60-day price range, a pattern that typically precedes periods of increased market movement. Currently, about 20% of Bitcoin’s supply sits within 15% of the current spot price, indicating heightened price sensitivity in the market.
Recent price action shows Bitcoin struggling to maintain momentum above the $107,200 resistance level. Technical analysis indicates the formation of a bearish trend line, with immediate resistance near $103,000 and key support levels at $101,750 and $100,500.
The market has seen an interesting shift in buying patterns, with smaller investors showing increased activity. Wallets holding less than 10 BTC collectively purchased approximately 25,600 BTC over the past month, nearly double the 13,600 BTC produced by miners during the same period.
Long-term holder behavior has also evolved, with the CoinDay Destruction (CDD) metric showing reduced activity. This metric, which measures how long coins remain idle before moving, indicates that many long-term investors who planned to take profits have already done so within the current price range.
Exchange inflows from long-term holders have decreased substantially, falling from $526.9 million in December to $92.3 million. This reduction suggests a decrease in selling pressure from experienced investors.
The total supply held by long-term investors has begun showing signs of growth, indicating a possible return to accumulation mode among this group. This shift comes after a period of distribution as prices approached the $100,000 mark in December.
Technical indicators present a mixed picture for Bitcoin’s short-term prospects. The hourly MACD (Moving Average Convergence Divergence) shows increasing bearish momentum, while the RSI (Relative Strength Index) remains below the 50 level.
The $103,650 level serves as a crucial resistance point, with a clear break above potentially opening the path to $104,500. Should buyers fail to maintain support at current levels, the price might test lower support zones.
Price action indicates that Bitcoin needs to maintain support above $100,500 to prevent further downside movement. A break below this level could lead to a test of deeper support near $88,500.
The cryptocurrency’s supply density metrics show approximately one-fifth of Bitcoin’s total supply concentrated within the current price range. This concentration suggests that small price movements could have outsized effects on investor profitability.
Market data shows Bitcoin trading at $104,207 at press time, representing a modest 0.5% increase over the past 24 hours. The price continues to fluctuate within established support and resistance levels.
Current trading patterns suggest the market remains in a consolidation phase, with both buyers and sellers showing restraint at current price levels. The reduced profit-taking activity might indicate a period of price discovery as the market seeks new equilibrium points.
The declining exchange inflows and reduced selling pressure from long-term holders provide context for the current market structure, highlighting a shift in investor behavior at these price levels.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
