Last week, Bitcoin (BTC) price surged above $44,000 but fell again after approaching a significant resistance point at $45,000. What is the expected movement for BTC according to analytical reports and statements from CryptoQuant analysts?
According to a report by an analyst at the CryptoQuant cryptocurrency analysis platform, the profit-taking by a certain group of investors may have caused the BTC price to drop. It has been suggested through the analysis of on-chain data that when BTC breached the $40,000 resistance, short-term holders and the investor group of 6-18 months tended to realize their profits.
The increase observed in the Coin Days Destroyed (CDD) metric indicates that a large amount of BTC that had not been spent for a long time has been spent. Yonsei claimed that binary CDD was also active during the BTC rally at the beginning of December and pointed to the recent activities of short-term investors.
It has been observed that short-term holders sold their BTCs with high profit margins, and the owners of Bitcoins bought six months ago sold just before the price fell from $44,000. On the other hand, long-term investors are firm in their positions and are waiting for higher price levels.
According to CryptoQuant’s recent weekly report, the crypto markets have seen selling pressure from Bitcoin miners and whales. Last week’s high exit levels of miners showed that miners sold more tokens with an average profit margin of 40% when BTC reached $44,000. Although the bear market is a thing of the past and crypto market liquidity conditions have improved, Bitcoin is still trading around $41,000 with a decline of approximately 6%.