Bitcoin Price Peaks at $124,157 Before Pulling Back to $123,000
Bitcoin's price has experienced a recent peak of $124,157 but is currently at $123,000, indicating a slowdown in momentum. Analysis reveals that long-term holders are liquidating their assets, contributing to selling pressure.
- Over 300,000 BTC held by long-term holders has been sold in four weeks.
- Dormant wallets, inactive for over a decade, have started moving coins again.
- Profit-taking by long-term holders has slowed compared to July's record levels.
- Supply from ancient wallets has limited upside potential but has mostly been absorbed.
- Implied volatility of BTC has decreased significantly due to call overwriting by institutions.
Despite these dynamics, there are indicators of strong demand. 1.88 million addresses purchased 1.3 million BTC at an average price of $118,000, acting as a support level. The market sentiment reflects expectations of macroeconomic shifts, including potential rate cuts by the Fed.
Experts suggest a possible rotation of funds back into bitcoin from other cryptocurrencies, particularly as ETH wallets show profitability.