Clear signals suggest that long-term Bitcoin investors are slowly starting to sell. After the first rally of the year in June, BTC investors made more profits compared to recent times. Long-term investors and holders are those who have held cryptocurrencies for more than six months. They seem to be making less profit from this rally compared to short-term investors.
Bitcoin hodl traders sell?
According to Crypto Quant data, long-term Bitcoin investors are making less profit from the current rally compared to short-term investors. The data shows that long-term Bitcoin investors are slowly selling their coins. As Crypto Quant analysts said in a recent blog:
This is illustrated by the difference in the chart, which shows the fact that long-term holders have profited more than the current top of $25,300 after the first aid rally in June.
In what direction is the acceleration?
This move indicates the possibility of an upward or downward trajectory for Bitcoin price. We could see a breakout both down and up as there is selling pressure. Crypto Quant analysts predict a target of $28,000 to $32,000 in the medium term. Also, there is a small chance for Bitcoin to surpass the June price drops.
In the shorter term, BTC could retest $23,000, but that could happen after another rejection at $19,000.
Bitcoin miner reserves have been on a downward trend lately.
For Bitcoin investors, miner sales are not a great sign as it could trigger another price drop. Also, investors are watching the upcoming Ethereum merge closely. After Merge comes, the Ethereum network will no longer use mining. This is why Ethereum miners are slowly migrating to PoW Blockchains like Bitcoin, Litecoin or Dogecoin.
According to data from Crypto Quant, miner reserves have been on a downward curve lately. The decrease in reserves is especially visible from 8 August and the net balance is currently negative.
Price analysis and forecasts
BTC fell below the $20,000 level for the first time in more than 30 days. According to price monitoring site CoinMarketCap, Bitcoin is down 0.75% in the last 24 hours to trade at $20,049.37. The last time BTC traded below the $20,000 range was on July 14. The sharp fall of the crypto market was triggered on the night of August 26 after hawkish comments from the Fed. cryptocoin.com The statements of Jerome Powell, which we have quoted as the following, promised a strict policy to fight inflation:
Re-establishing price stability will take some time and requires vigorous use of our tools to better balance demand and supply. Lowering inflation likely requires a period of below-trend growth
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