Long-Term Bitcoin Holders Start Cashing Out as BTC Rally Cools Off to $93,000

Long-term Bitcoin (BTC) holders have started taking profits since the cryptocurrency price attempted to reach $100,000. As a result, Bitcoin’s price has retraced to $93,000, affecting the value of the broader crypto market capitalization.

Is Bitcoin’s price rebounding? Short-term investors may want to know as this on-chain analysis examines the chances.

Activity Around Bitcoin Drops, Holders Book Gains

According to CryptoQuant, Bitcoin’s long-term profit output ratio has surged to 2.86. This ratio measures the activity of long-term investors who have held the coin for more than 155 days.

When the ratio is over 1, it means that these long-term Bitcoin holders are selling at a profit. On the other hand, if the profit output ratio is less than 1, it implies that holders are selling at a loss. Since the reading is higher, it indicates that these holders are booking profits from the recent price hike.

Besides that, it is noteworthy to mention that this profit-taking is the highest holders have taken since August 30. Should this continue, then BTC price risks falling below the $93,000 threshold.

Bitcoin Long-Term Holder Spent Output Profit Ratio. Source: CryptoQuant

Beyond that, active addresses on the Bitcoin network have significantly decreased this week, which could spell trouble for the cryptocurrency’s price if the trend persists. Active addresses measure the number of unique addresses involved in transactions, reflecting user engagement with the blockchain.

When active addresses increase, it indicates growing network activity and adoption. Conversely, a decline suggests reduced participation.

On November 26, Bitcoin’s active addresses were nearly 1 million, showcasing significant traction. However, as of this writing, the figure has dropped to 768,000, a noticeable decline. If active address activity continues to wane, it may signal weakened market sentiment and could contribute to further price declines, as previously highlighted.

Bitcoin Active Addresses. Source: Santiment

BTC Price Prediction: Time to Go Below $90,000?

On the daily chart, Bitcoin’s price has fallen below the dotted lines of the Parabolic Stop and Reverse (SAR) indicator. This technical tool identifies support and resistance levels.

Dotted lines below the price signal strong support, while lines above the price suggest resistance that could lead to a decline. Currently, Bitcoin faces the latter scenario.

Bitcoin Daily Analysis. Source: TradingView

If this resistance persists, BTC could drop to $84,640. However, if long-term holders reduce profit-taking, Bitcoin’s value might rise instead, potentially reaching $99,811.