Bitcoin’s price began the week on a positive note, reaching a high of $68,884 per coin. However, long-term BTC holders are now cashing in their profits ahead of the halving event, potentially putting a halt to the ongoing rally.
On March 18, Bitcoin’s attempt to reclaim the $70,000 mark was unsuccessful. Analysis of on-chain data trends reveals several bearish factors that could impact the price movement in the upcoming week.
Investors are diversifying their portfolios into other sectors like Avalanche (AVAX) and Solana (SOL), and some are even investing in meme tokens from presales. Consequently, Bitcoin and Ethereum are facing challenges in gaining momentum.
Additionally, data shows that long-term Bitcoin investors are becoming more active as the halving event approaches. Santiment’s age-consumed metric indicates increased trading activity among these investors, with over 37.6 million coin days consumed on March 17 alone. This suggests a higher movement of long-held coins, which could affect prices negatively in the short term.
Historically, when long-term investors start selling significant amounts of coins, it often precedes a price dip. With the halving event just 32 days away, this selling activity could intensify, potentially hindering Bitcoin’s short-term prospects of reaching $75,000.
Considering the current scenario, it seems unlikely that Bitcoin will surpass the $75,000 mark in the near future. Data from IntoTheBlock’s global in/out of the money analysis also supports this view, indicating that many holders bought in during the recent rally and might sell once prices approach their break-even point.
If long-term investors continue to sell off their holdings, Bitcoin could experience a decline below $65,000. However, strong inflows from Bitcoin ETFs could counteract this selling pressure and help BTC maintain its position near $70,000.