Bitcoin Price Struggles: Will It Rebound from Recent Pullback?
Bitcoin Price Struggles – Bitcoin’s recent pullback, amid broader macroeconomic uncertainty, may prevent the cryptocurrency from quickly reaching its January $109,000 all-time high (ATH), according to a recent analysis by XBTManager, a contributor to CryptoQuant.
Consolidation Likely Following ATH
In a March 5 analyst note, XBTManager suggested that Bitcoin is currently in a pullback phase after reaching its ATH and will likely continue to consolidate for an extended period due to liquidity needs. The analyst emphasized that, for now, traders should exercise caution as Bitcoin navigates through this period.
Long-Term Holders and Market Sentiment
XBTManager further explained that Bitcoin’s long positions will only become “viable” once short-term holders — defined as those holding Bitcoin for less than 155 days — begin to sell their positions and long-term holders return to buying. Until this shift occurs, the analyst advises risk-averse strategies for traders entering positions in the asset.
Decline in Long-Term Holder Supply
The analyst also pointed out the behavior of long-term holders during Bitcoin’s price surge. As Bitcoin approached its $109,000 ATH on January 20, short-term holders began increasing their supply while long-term holders reduced theirs. Over the following 30 days, Bitcoin saw a drop of around 100,000 BTC in long-term holder supply. A larger decline occurred in December 2024 when Bitcoin first reached six figures.
According to Bitbo data, on December 1, long-term holder supply peaked at 15.2 million BTC, but by December 20, it had fallen to 14.7 million BTC. As of now, long-term holder supply stands at 14.4 million BTC, reflecting a decline of 800,000 BTC since December.
Bitcoin’s Recent Price Movements
Bitcoin’s price has fluctuated in recent months, retreating below $100,000 on February 4 amid fears of a trade war following US tariffs. It later fell to $85,000 by February 27, and briefly dropped below $80,000, erasing almost all gains made since November 2024 when Donald Trump was elected. As of now, Bitcoin is trading at $87,100, according to CoinMarketCap.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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