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Bitcoin Price hit a new all-time high of $69,098 on March 5th, before experiencing a significant correction due to widespread profit-taking. The price dropped by 13% to a weekly low of $59,458 on March 6th. This article explores the current state of the Bitcoin (BTC) Price and analyzes the possibility of a breakout above $75,000 or a reversal down to $50,000.
Record-Breaking Profit-Taking Triggers Bitcoin Price Reversal
On March 5th, Bitcoin (BTC) Price surpassed $69,090 for the first time in its history. However, this milestone was followed by a rapid sell-off as traders cashed in on their profits. Within 24 hours, the price dropped significantly due to aggressive selling and liquidations in the derivatives market.
Bitcoin (BTC) Price managed to rebound above $67,000 thanks to increased demand from exchange-traded funds (ETFs) and covering purchases by leveraged traders. However, on-chain data suggests that bearish pressures might persist in the near future, potentially leading to a Bitcoin Price consolidation phase.
On-Chain Data Reveals Long-Term Holder Profit-Taking
On-chain data analysis indicates that long-term Bitcoin (BTC) Price investors engaged in record-breaking profit-taking before the recent price retracement. Santiment’s Age Consumed metric, which tracks long-term investor activity by measuring the number of recently moved coins multiplied by the number of days since they were last moved, reveals a significant spike in activity as Bitcoin Price approached the $70,000 mark. This suggests that a portion of long-term holders decided to take profits at this critical price point.
While profit-taking from long-term holders is common after reaching new highs, prolonged selling could exacerbate the price decline or hinder the next rally. Therefore, strategic swing traders should closely monitor the behavior of long-term holders in the coming days to gauge the likelihood of Bitcoin Price reaching $75,000 or experiencing a correction down to $50,000.
Bitcoin Price Prediction: Consolidation Likely in the Near Term
Based on the current on-chain data, Bitcoin Price is expected to consolidate within the $60,000 to $69,000 range unless the ongoing selling trend from long-term holders subsides. IntoTheBlock’s global in/out of the money data further supports this prediction, indicating a strong buy-wall around $59,300 that could prevent a significant drop below $50,000.
On the other hand, if Bitcoin Price attempts to climb higher, it might face renewed selling pressure from traders taking advantage of the psychological resistance level around $70,000. This resistance could make a near-term breakout above $75,000 unlikely.
Conclusion
The recent surge in Bitcoin Price was followed by a correction triggered by profit-taking from long-term holders. While Bitcoin Price has rebounded from its lows, on-chain data suggests that a consolidation phase is more likely in the near term. The future direction of Bitcoin Price will depend on the behavior of long-term holders and the overall market sentiment.
