Bitcoin prices have been under continued pressure recently. Many are asking, “Who is selling Bitcoin?” Chris Kuiper, Research Director at Fidelity Digital Assets, points out that many are losing patience as Bitcoin’s performance this year lags behind gold and broader market indices, with long-term holders (HODLers) slowly taking profits. Markus Thielen, CEO of 10X Research, further states that 93K is a key price level for Bitcoin; a break below this level could trigger more stop-loss selling pressure.
BTC continues to be under pressure, who is selling Bitcoin?
Bitcoin prices have been under continued pressure recently. Chris Kuiper, Research Director at Fidelity Digital Assets, is most frequently asked the following question:
Who is selling Bitcoin?
Kuiper identifies long-term holders (HODLers) as the key factor! He uses the percentage of active Bitcoin holders (orange line in the chart below) and Bitcoin price (black line in the chart below) as his argument. The orange line rises during bear markets because as Bitcoin is held for longer periods, people accumulate more Bitcoin to absorb losses, and then typically drops sharply as these long-term holders sell during strong bull markets. Interestingly, the decline in this bull market has been relatively gradual. It didn’t crash at new highs but instead slowly retreated as the market consolidated and rose.
![图片[2]-Who is selling Bitcoin? BTC is slowly bleeding, with 93K becoming a key defense line.-OzABC](https://www.ozabc.com/wp-content/uploads/unnamed-file-6.png)
Bitcoin’s gains this year have lagged behind gold and broader market indices.
Kuiper believes this pattern makes sense from a psychological perspective, and he has heard similar sentiments from clients and others. Bitcoin’s recent underperformance compared to gold and even the S&P 500 suggests growing fatigue among investors.
Everyone anticipated a prosperous four-year cycle and waited to sell at the peak during the historically strong seasonal rally in October and now November. However, with the strong seasonal pattern in October failing to hold and the year-end approaching, long-term holders are preparing for year-end tax and portfolio adjustments, ready to cash out their current gains.
However, for now, Kuiper believes there remains a divergence between positive fundamental developments and weak price action. He will closely monitor this trend, along with other indicators, to assess the extent of sellers’ weakness.
10X Research: Bitcoin at 93K is a key price level
Markus Thielen, CEO of 10X Research , echoed this sentiment, noting that Bitcoin’s mere 10% gain this year, significantly lagging behind gold or tech stocks, has caused some professional investors to lose patience. If Bitcoin’s price begins to decline again, risk advisors may urge institutional clients to reduce their positions before the end of the year.
“A risk manager might step in at some point and tell you that you need to liquidate or reduce your holdings. Bitcoin may continue to underperform as people need to rebalance their portfolios. You might need to buy more Nvidia stock to use when sending reports to investors.”
Thielen warned that if Bitcoin’s price falls to the key technical level of 93K, more holders may be forced to exit the market. Those with weaker balance sheets may be forced to liquidate their positions due to losses.
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