Bitcoin is entering what many consider the most crucial week of this market cycle, not because of the looming US election or the Federal Reserve’s upcoming interest rate decision, but because it is on the verge of breaking an all-time high. If BTC crosses this milestone, it will enter “price discovery” mode, potentially leading to a massive rally across the crypto market.

This optimistic expectation is supported by data from CryptoQuant analyst Maartunn, who highlighted that Bitcoin Long-Term Holders have sold a whopping 177,617 BTC over the past seven days.

This sell-off from seasoned holders often signals a bullish phase, indicating they are taking profits in anticipation of a possible market shift. This positioning aligns with BTC’s momentum nearing its peak, indicating that many view current prices as ideal for locking in gains and potentially making room for new buyers and new demand.

With BTC so close to record highsAny upside breakout could change the sentiment of the entire market and trigger a substantial bullish rally, marking this week as a critical period for BTC and the broader crypto landscape.

Bitcoin is entering the Bull Run phase

Bitcoin is entering the final phase of this cycle as it approaches all-time highs and flirts with uncharted territory. This pivotal moment has attracted a lot of attention from analysts and investors alike.

CryptoQuant analyst Maarunn recently shared the Balance Change by Time Held chartwhich shows that BTC Long-Term Holders (LTH) have sold 177,617 BTC in the last seven days. This chart illustrates the movement of older BTC, which are typically owned by investors with a long-term perspective.

Long-term Bitcoin holders have sold 177,617 BTC in the last seven days
Bitcoin long-term holders have sold 177,617 BTC in the last 7 days | Source: Maartunn on X

Long-term holders are generally less affected by market volatility than short-term speculators. Their activity often serves as a contrarian indicator; they tend to buy and increase their holdings during price declines and sell when prices rise. While the price of BTC has risen in recent days, there has been a noticeable increase in LTH distribution, indicating a possible shift in sentiment among these seasoned investors.

This behavior is reminiscent of patterns observed during previous bull runs in 2018, 2021 and 2024, when LTH activity was critical to price movements. The current rise in BTC prices and increased selling of LTHs suggest that these investors may be taking profits in anticipation of a potential breakout, reflecting their confidence in the market trajectory.

As Bitcoin approaches its all-time high, the dynamics between long-term holders and the broader market will be key in determining whether it can maintain momentum and enter a new phase of price discovery. This week could set the tone for the future of Bitcoin and the entire cryptocurrency market.

BTC is approaching ATH

After falling below this crucial level yesterday, Bitcoin is now trading above the $68,000 mark. With the price hovering just below $69,000, market participants are keeping a close eye on developments surrounding the US elections. If the bulls want to regain momentum and move towards a bullish trajectory, BTC needs to break above the $70,000 mark in the coming days and challenge its all-time highs.

BTC holds above the $68,000 mark
BTC holds above the $68,000 mark | Source: BTCUSDT chart on TradingView

However, the current volatile environment and uncertainty surrounding economic factors could lead to price fluctuations that push BTC down. If such a scenario unfolds, the key support level will be at the $66,500 mark, a critical demand zone that maintains the bullish price structure. Maintaining support above this level is essential to maintain upward momentum and avoid a deeper correction.

As the market awaits the election outcome, traders remain cautious, with price action likely influenced by the political landscape and broader economic sentiment. The coming days will be crucial for Bitcoin as it looks to lay a solid foundation to achieve further gains and potentially enter a new phase of price discovery.

Featured image of Dall-E, chart from TradingView

By newadx4

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