Bitcoin Nears $100K: Insights from Extreme Investor Network

By Timothy Morano
Published on November 26, 2024

Bitcoin is fast approaching the coveted $100,000 mark, marking a significant moment in cryptocurrency history. According to data from Glassnode, this surge is accompanied by a remarkable uptick in the distribution of Bitcoin by Long-Term Holders (LTHs), who have offloaded a staggering 507,000 BTC. As we witness this pivotal moment, it’s essential to delve deeper into the factors at play and what they mean for investors within the Extreme Investor Network.

The Long-Term Holders’ Strategy

As Bitcoin’s price climbs, so too does the strategic execution by Long-Term Holders. With 507,000 BTC distributed, we see a notable increase in sell-side activity. While this number is shy of the 934,000 BTC offloaded during the March 2024 surge, it signals a calculated move by LTHs to maximize profits amid rising demand.

Currently, approximately 0.27% of the total Long-Term Holder supply is sold daily—this is a remarkable shift considering it surpasses the previous peak in March. What’s notable about this distribution is that a considerable amount is occurring with coins that have been held for six months to a year, indicating that LTHs are actively taking advantage of favorable market conditions.

Realizing Unprecedented Profits

One of the standout statistics is that daily realized profits for Long-Term Holders have soared to an all-time high of $2.02 billion. This wave of profit-taking underscores the critical balance between supply and demand. For prices to maintain momentum and avoid a sharp correction, there will need to be robust demand to soak up this newly available supply. From our analysis at Extreme Investor Network, this profit-taking behavior reflects a complex blend of long-held strategic investment and opportunistic trading.

Moreover, the current trading environment post-ETF launches has encouraged investors to adopt swing-trade strategies, allowing them to maximize their returns based on recent market fluctuations.

Assessing Market Stability

As Bitcoin trends towards this psychological $100,000 milestone, we must consider the sustainability of this upward trajectory. Looking back to the March 2024 all-time high, support zones established between $40,000 and $73,000 played a crucial role in price stabilizations. In contrast, the recent rapid price spikes have led to minimal transactions occurring in the range of $76,000 to $88,000, hinting at potential volatility as traders navigate this uncharted territory.

Our insights at Extreme Investor Network suggest that observing shifts in supply distribution will be key. The Sell-Side Risk Ratio reveals that while profit-taking is substantial, it remains below the peaks observed in previous cycles, implying there is still room for the market to absorb additional supply before significant resistance levels are hit.

Conclusion: The Road Ahead

As Long-Term Holders distribute their Bitcoin, we recognize the intricate connection between demand and supply shaping Bitcoin’s approach to the $100,000 mark. At Extreme Investor Network, our focus is on equipping investors with the knowledge needed to navigate these rapidly changing dynamics.

Stay tuned for more insights and detailed analyses as we watch this incredible journey unfold. To dive deeper into the data and trends influencing today’s market, check out our resources or the original report from Glassnode. Together, we can harness the potential of this cryptocurrency revolution.

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