Bitcoin is trading near $85,500 as a key metric suggests a significant reduction in selling pressure. Analysts note the long-term holder sell-side risk ratio has hit historic lows, a condition that has preceded major price reversals. Bitcoin is currently testing critical support zones, which analysts indicate could lead to further consolidation or a minor dip before a potential upward move.
Bitcoin (BTC) is currently trading at $85,488 with a market capitalization of $1.75 trillion following a 4% decline over 24 hours. This consolidation phase coincides with a notable drop in selling pressure from a key investor cohort.
The long-term holder (LTH) sell-side risk ratio, which gauges the likelihood of long-term investors selling, has reached historic lows. A low ratio reduces a major hurdle to price growth as it indicates these holders are unlikely to sell their assets.
Analyst BATMAN explained that this indicator hitting its current range has been a precursor to major BTC reversals in recent years. “When this indicator hits this range, it means a big bounce in BTC is coming,” BATMAN stated.
Simultaneously, Bitcoin is testing a critical support zone according to analysis from More Crypto Online. The analyst explained that wave (B) is not yet complete and that wave (C) might form another low before the next rally begins.
This suggests the cryptocurrency could experience minor dips before initiating a larger upward move. The combination of low long-term holder selling risk and ongoing support tests points to a potentially significant juncture for Bitcoin’s price action.
Investors and market observers are closely monitoring these developments. The current setup indicates a higher chance of a market reversal, contingent on these support levels holding.
