Bitcoin prices have started the new month roughly, continuing a tumultuous run from October. On the afternoon of Friday, November 7, the leading cryptocurrency briefly fell below the psychological $100,000 level for the second time in the past week.
Bitcoin price difficulties in recent weeks have been attributed to changes in the behavior of investors, particularly the class known as long-term holders (LTHs). Renowned cryptocurrency expert at
The apparent demand growth for BTC turned negative.
In a recent post on the However, cryptocurrency experts pointed out that the increased sales activity of LTH is not new.
According to Moreno, it is very normal for long-term Bitcoin investors to shed some of their holdings during bull markets as they look to take some profits when prices are high. What was different this time was that there was no corresponding call to clear these offroads.
To back this up, Moreno shared a chart consisting of long-term holder spending and apparent demand growth over the past few years. For context, apparent demand growth measures the difference between the amount of an asset (in this case Bitcoin) being acquired compared to the amount being created (mined).
Source: @jjc_moreno on X
CryptoQuant’s head of research noted that Bitcoin prices have hit past all-time highs during a period of increased selling by long-term holders, albeit with a positive increase in demand. As you can see in the chart, this occurred during the all-time rallies of January-March 2024 and November-December 2024.
The highlighted chart also shows that long-term Bitcoin holders have been selling since October, which is not particularly wrong. However, apparent demand growth is contracting, meaning there is no buying pressure to absorb LTH supply at higher prices.
Ultimately, these on-chain observations suggest that less focus should be placed on the selling activities of long-term Bitcoin holders. For the BTC price to reverse in the coming weeks, there must first be a positive apparent increase in demand.
Bitcoin price at a glance
As of this writing, the flagship cryptocurrency has recovered back above $100,000 and is worth around $103,700, up nearly 3% in the last 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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