Bitcoin (BTC) recorded a new recent high, approaching its historical record. Currently priced around $109,404, the asset has recovered after falling to $108,000 over the weekend.
Despite the positive sentiment in the market, the data suggests caution on the part of investors. Indicators show that long-term investors (LTHs) have started to show signs of uncertainty.
The consumed age metric, which measures the movement of inactive assets for long periods, recorded its highest peak in over a year. This indicates that LTHs are selling their BTCs, signaling a loss of patience while waiting for a new historical peak.
As these investors hold a significant share of the total supply, their liquidations often exert negative pressure on the price of BTC. Historically, movements of this type signal weakening market sentiment.
However, despite this increase in sales, the price of Bitcoin did not experience a significant correction. This suggests that the market still demonstrates resilience. The recent movements of LTHs did not result in a trend reversal, indicating that other factors are offsetting the selling pressure and sustaining the stability of the currency.
Bitcoin Age Consumed. Source: Santiment
The broader market momentum for Bitcoin also shows signs of strengthening. Earlier this month, the number of new addresses registered growth, indicating renewed interest and optimism regarding the asset.
This increase suggests that the market is gaining traction, with the entry of new participants. Although there was a slight reduction in the number of new addresses over the weekend, the decline was modest, with no significant impact.
This scenario suggests that the recent price fluctuations of Bitcoin have not deterred investor interest, reinforcing the perception of resilience in the current bullish cycle.
Bitcoin New Addresses. Source: Glassnode
BTC price faces resistance near the historical record
Bitcoin (BTC) is currently trading at $109,404, close to the resistance located at $109,476. The recent recovery from $108,000 has put the asset on a positive trajectory, with the next target being the $110,000 mark.
Should it surpass this level, BTC could aim for its historical record, set at $111,980. At the time of this report, the asset is 2.3% away from that peak.
The advance towards this level will depend on the balance between the interest of new participants and the stance of long-term investors. To sustain the upward trend, it will be essential that the latter avoid significant liquidations, which could generate selling pressure and compromise the continuity of the movement.
Bitcoin Price Analysis. Source: TradingView
However, if the resistance at $109,476 holds and Bitcoin fails to break through, the price may retreat to $108,000 or even drop to $105,585. However, this drop would invalidate the current bullish thesis and suggest that the market is not ready for a breakout at this time.
The article Bitcoin (BTC) near the record: will the currency break the $109,500 barrier? was first seen on BeInCrypto Brazil.