Long-Term Bitcoin Holders Start Cashing Out as BTC Rally Cools Off to $93,000 📉

Long-term Bitcoin holders have begun cashing out as BTC approached $100,000, resulting in a price dip to $93,000. This movement has implications for the broader cryptocurrency market capitalization.

According to CryptoQuant, the long-term profit output ratio is 2.86, showing significant profit-taking by holders possessing coins for over 155 days. A ratio above 1 indicates these investors are making profits.

The current profit-taking is the highest since late August, and if this trend continues, BTC might drop below $93,000. Simultaneously, Bitcoin's active addresses decreased significantly this week, indicating reduced engagement and potential price pressure.

The number of unique addresses involved in transactions dropped from nearly 1 million on November 26 to 768,000. This could signal weakening market enthusiasm and contribute to further price declines.

Technical analysis shows Bitcoin falling below Parabolic SAR indicator lines on its daily chart, suggesting resistance at current levels. If resistance persists, BTC might decline to $84,640. Conversely, a reduction in profit-taking could support a rise, targeting $99,811.