Bitcoin tested the $63,000 level on Friday as data showed long-term holders continuing to sell their coins at a loss, with macro risk-off sentiment weighing on the broader cryptocurrency market.
Analysts noted that roughly two-thirds of the Bitcoin moving onto exchanges currently comes from long-term holders who are realizing losses. This selling pressure has been a persistent drag on prices, even as some short-term traders have attempted to establish positions near support levels.
The sell-off among long-term holders is unusual for this stage of the market cycle. In previous bull markets, long-term holders tended to accumulate during drawdowns rather than liquidate holdings at a loss. The current behavior suggests that some early adopters and large holders are reducing exposure amid uncertainty about the near-term price trajectory.
Broader market conditions have added to the downward pressure. US-Iran tensions and renewed trade frictions between the United States and China have triggered a risk-off shift across financial markets, with investors rotating out of volatile assets like cryptocurrencies and into safer havens.
Despite the negative price action, some on-chain metrics point to accumulation among new market participants. Wallets that have held Bitcoin for less than six months have been increasing their balances, suggesting that newer investors see current prices as an attractive entry point.
The conflicting signals between long-term holder selling and new buyer accumulation have created a tug-of-war that keeps Bitcoin range-bound. Traders are watching for a decisive break above $68,000 or below $60,000 to determine the next directional move.
This article was adapted from Decrypt. Read the original here.
