2-5-2025 – Long-standing bitcoin investors find themselves at a pivotal crossroads as their unrealised gains near historically significant levels. Fresh analysis from blockchain intelligence firm Glassnode reveals that veteran Bitcoin holders are presently sitting on paper profits of approximately 350%, a threshold that has traditionally triggered substantial selling activity.
The cryptocurrency market’s recent upswing has propelled bitcoin to a striking $97,500, marking its peak since late February. However, this impressive rally has created a complex scenario where seasoned investors, including those previously committed to holding indefinitely, are weighing their options for profit realisation.
Market analysts are particularly focused on the $99,900 price point, which Glassnode identifies as a crucial threshold where long-term holder profit margins typically reach 350%. This level historically coincides with increased distribution patterns, potentially necessitating robust buying pressure to maintain the asset’s upward trajectory.
Trading patterns reveal intriguing market dynamics, with a notable disparity in liquidation positions. A prominent trader, TheKingfisher, highlights a substantial concentration of long position liquidations beneath $91,000, whilst short positions above $96,600 remain relatively sparse. This imbalance suggests potential downward pressure on prices, particularly challenging for traders maintaining long positions at current levels.
Technical indicators paint a nuanced picture of market strength, with Bitcoin’s price action testing critical technical levels. The cryptocurrency’s relationship with its 111-day simple moving average and short-term holder cost basis serves as a crucial barometer for market sentiment. Whilst recent price action demonstrates promising momentum above these metrics, maintaining these levels remains essential for confirming bullish market structure.
