James Chek: Bitcoin will resume growth after the major sell-off ends

According to analysts, the current decline in Bitcoin's price is due to active profit-taking by long-term investors. Selling pressure continues to curb the bullish trend.

Analyst James Chek noted that the crypto market is unable to recover due to the large number of holders of the leading digital coin who have decided to sell their holdings. He added that it is long-term investors who are creating a stable resistance.

He presented data showing that the average age of coins being sold is increasing, indicating that older assets are entering the market. Realized profits reached $1.7 billion per day, while losses totaled approximately $430 million, one of the highest levels of the current cycle. Meanwhile, the “renewed supply” of older coins has grown to $2.9 billion per day, indicating a mass withdrawal of Bitcoin from long-term storage.

Investor Will Clemente believes similar dynamics have been observed in the past. He argues that the decline in BTC prices last year was largely due to the transfer of coins from early holders to institutional investors. He noted that this redistribution process won't have a significant impact on the market in the future, but it is currently hindering growth.

Galaxy Digital CEO Mike Novogratz also confirmed that many long-standing investors have begun taking profits. He stated that the market is undergoing a natural redistribution phase, with old participants exiting and new ones just beginning to open positions.

Despite the pressure, Bitcoin held its key support level at $108,700. A Rekt Capital analyst noted that a breakout above this level could signal further growth to $120,000 and even higher. He emphasized that stable price action is currently crucial for maintaining the global uptrend.

Source: cryptonews.net