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Bitcoin (BTC) has experienced fluctuations after it hit an all-time high (ATH) of $123,091 on July 13. In the last seven days, the leading cryptocurrency dipped by 3.52%, sparking concerns about the ongoing bull run. Many market participants have wondered if the current bullish momentum has ended.
Long-term holders strengthen market stability
According to CryptoQuant analysis, the bull run is still alive, and two key indicators will play a significant role in Bitcoin’s future gains. Notably, short-term traders might impact the price trajectory of the asset as they go for profit-taking. This could lead to a correction on the market.
However, due to the confidence of long-term holders, that is, investors who have held the asset for over 155 days, their holding action could help stabilize the price. Although Bitcoin is trading close to the $104,000 support zone, the asset is unlikely to dip further as these long-term holders refuse to sell.
Interestingly, these long-term holders are not rushing to sell because, as CryptoQuant noted, their Net Unrealized Profit is above 0.5. This implies that despite the fluctuations of the last couple of weeks, long-term holders have more than 50% of unrealized profit.
Given the comfortable position of these investors, rather than exerting selling pressure on the asset, they are likely to continue holding. Meanwhile, institutional holders like Metaplanet would continue to acquire Bitcoin to increase their portfolio. These developments could help support the ongoing bullish run.
Bitcoin’s price outlook
As of press time, Bitcoin is changing hands at $114,450.53, representing a 0.63% uptick in the last 24 hours. The flagship coin has moved between a low of $113,546.81 and a peak of $114,984.20 within this period.
However, volume remains in the red zone, down by 14.98% at $48.43 billion. This might be the result of short-term holders going for profit, as noted by the analysis.
As reported by U.Today, bullish market participants are looking forward to the coin climbing to $116,000. If it does, about 91% of assets in profit could help catalyze a breakout to $150,000.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team