Bitcoin's rally will continue when long-term holders stop selling.

Analysts believe the Bitcoin price faces a challenging period as long-term holders continue to lock in profits.

The failure of cryptocurrency markets to recover was not due to manipulation, paper Bitcoin, or suppression, but to good old-fashioned sellers, analyst James Check said Sunday.

Chek added that the extent of pressure from existing Bitcoin holders is still not fully realized by the general public. This pressure has become a source of resistance at the moment.

An analyst published a chart showing that the average age of spent coins increased throughout the cycle. This indicates that it was long-term holders who were selling.

Another chart showed realized profits soaring to $1.7 billion per day, while realized losses rose to $430 million per day, the third-highest level of the current cycle.

Meanwhile, the renewed supply of old coins reached the second-highest level at $2.9 billion per day.

Old coins are returning to circulation as long-term holders take profits. Source: James Chek

Bitcoin startups are taking profits

Crypto investor Will Clemente stated that the last year of BTC's relative weakness was largely due to a shift in supply from startups to traditional financial institutions. This is clearly evident in on-chain data.

“This dynamic will be largely irrelevant in the coming years as everyone is focused on BTC’s relative weakness.”

Galaxy Digital CEO Mike Novogratz echoed that sentiment in an interview with Raoul Pal last week.

“There are a lot of people in the Bitcoin world who've been doing this for so long and finally decided, 'I want to buy something,'” he said, citing friends who bought a yacht and joined a sports team.

“People are saving because they had a great run, and we're just digesting that turnover.”

Novogratz confirmed that the only supply his company had seen was from old OGs and miners.

Weekly close holds support

According to TradingView, Bitcoin is holding support. The weekly candle closed at $108,700.

“If this level continues to hold, the price could eventually rise to more than $120,000. Stability is absolutely key here,” a Rekt Capital analyst said on Sunday.

At the time of writing, the asset had recouped the $110,000 level, but it faces new resistance just above this mark.

Source: cryptonews.net