Bitcoin has been trading steadily above $88,000, showing resilience as the broader market anticipates its next significant move. Investors expecting lower prices might be frustrated as Bitcoin doesn't offer easy entry points into the market.
Long-term holders (LTHs) are in an active distribution phase, as CryptoQuant reveals, indicating increased selling activity. However, the strong demand for Bitcoin has absorbed this additional supply, maintaining robust support for the current price levels.
Bitcoin is on the brink of reaching a new all-time high, currently only 2% below the $93,483 level it hit last Wednesday. Analysts and investors are watching closely to see if the price will break past this critical level or remain in a prolonged consolidation phase.
Despite peak spending among LTHs, a portion of long-term holders remains confident, indicating a strong belief in Bitcoin's potential. This dynamic highlights a significant market interest, with demand offsetting distribution, keeping the bullish momentum intact.
Bitcoin's ability to hold above the $87,000 support level is crucial for maintaining upward momentum. A drop below this level could indicate a market sentiment shift, potentially leading to a correction and searching for fresh demand around the $80,000 support zone.
The broader market sentiment remains bullish as demand continues to outstrip supply, mitigating the effects of selling activity. This interest supports Bitcoin's robust price action as traders watch for potential new highs or tests of lower support levels.
