- Bitcoin‘s consolidation phase following its January $109,000 all-time high may continue for an extended period, according to analysts.
- Long-term holders have reduced their Bitcoin supply by 800,000 BTC since December 1, indicating significant profit-taking.
- Analysts suggest caution for traders until long-term holders resume accumulation, signaling a potential return to bullish market conditions.
Bitcoin unlikely to reclaim $109,000 quickly as market undergoes post-ATH consolidation phase, with the cryptocurrency currently trading at $87,100 after falling significantly from its January peak.
According to CryptoQuant contributor XBTManager, Bitcoin’s recent price action suggests investors should prepare for a prolonged period of consolidation following the asset’s retreat from all-time highs. “We should assume that we are in the pullback phase after the ATH and will likely continue to consolidate for some time due to liquidity needs,” the analyst said in a March 5 report.
The analysis indicates that Bitcoin’s market dynamics changed notably in the days preceding its January 20 peak at $109,000. Short-term holders—defined as those holding Bitcoin for less than 155 days—began increasing their positions while long-term holders started selling their supply.
“Over the next few months, caution is advised, and highly risky trades should be avoided,” XBTManager warned, suggesting that long BTC positions will only become viable once short-term holders begin selling and long-term investors resume accumulation.
Supply metrics reveal significant selling pressure from long-term holders. According to data from Bitbo, long-term holder supply reached 15.2 million BTC on December 1, just before Bitcoin first crossed the $100,000 threshold on December 5. This supply subsequently declined to 14.7 million by December 20.
The selling trend has continued, with long-term holder supply now standing at 14.4 million BTC—representing an 800,000 BTC reduction since early December, indicating substantial profit-taking by veteran investors.
Bitcoin’s price has experienced significant volatility in recent weeks. After first dropping below $100,000 on February 4 amid concerns over potential trade wars stemming from President Trump’s tariff proposals, the cryptocurrency fell further to $85,000 on February 27 when markets processed confirmation of new US tariffs. Later that same day, Bitcoin dropped below the psychologically important $80,000 level, effectively erasing gains made since the November presidential election.
At time of publication, Bitcoin is trading at $87,100, according to CoinMarketCap, representing a 1.43% decline over the past week.
Investors should conduct thorough research before making investment decisions, as cryptocurrency markets involve significant risk.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Medical Officer Loses RM86,200 in Cryptocurrency Investment Scam
- El Salvador’s Bukele Defies IMF’s Bitcoin Ban Demands in $1.4 Billion Loan Dispute
- Markets Predict 70% Chance U.S.-Canada Trade War Ends by May Following Lutnick Comments
- El Salvador President Defies IMF Request to Stop Buying Bitcoin
- FBI Files Forfeiture Complaint Against $8.2 Million in Tether Cryptocurrency Linked to Investment Fraud Scheme
