Bitcoin’s Long-Term Holders Show Signs of Strain After February Sell-Off

💡 DMK Insight

Bitcoin’s long-term holders are losing their grip, and here’s why that matters: The on-chain data indicating weakening accumulation among long-term holders suggests a potential shift in market sentiment. If Bitcoin breaks below $65,000, the next support level at $54,000 could be tested. This isn’t just a number; it reflects a critical psychological barrier for traders. A breach of $65,000 could trigger stop-loss orders and further selling pressure, leading to a cascade effect that might push prices down to that $54,000 level. Traders should be aware that this could also impact altcoins, as a drop in Bitcoin often drags the entire market down. But here’s the flip side: if Bitcoin manages to hold above $65,000, it could attract new buyers looking for a bargain. Watch for volume spikes around these levels, as they could provide insight into whether the market is ready to bounce back or if further declines are imminent. Keep an eye on the daily chart for any signs of reversal patterns as well.