On November 12, Bitcoin (BTC) soared past the crucial $90,000 barrier, briefly touching an all-time high of $93,265. However, BTC has since pulled back, currently trading at $87,757, marking a 6% decline over the past two days.
Short-Term Profit-Taking Signals a Potential Price Dip
Recent on-chain data suggests the drop in Bitcoin’s price was driven by a wave of profit-taking among short-term holders. These investors, often looking to lock in quick gains, have added selling pressure, making a near-term return to the $90,000 level less likely.
Short-Term Holders Influence BTC Market Movements
Analyzing Bitcoin’s Spent Output Age Bands (SOAB) offers insight into holder behavior. The SOAB metric tracks Unspent Transaction Outputs (UTXOs) based on their age, helping gauge market sentiment. When younger age bands show increased spending, it often signals selling activity by short-term holders—those holding BTC for less than 30 days.
Data from CryptoQuant revealed that on the day Bitcoin surged past $90K, holders who had their coins for just one day transferred a whopping 1,146,151 BTC, the highest in two months. Investors with holding periods of one to seven days moved 135,950 BTC, while those holding for seven to 30 days transferred 32,021 BTC.
This surge in transactions by newer holders indicates heightened profit-taking or reduced confidence, which typically leads to increased selling pressure and market volatility.
Long-Term Holders Maintain Steady Hands
In contrast, long-term Bitcoin holders—those who have held their coins for over 12 months—showed minimal movement during this period. Their lack of significant selling suggests that the recent fluctuations are driven primarily by short-term investors seeking quick profits.
Bitcoin Price Prediction: What’s Next for BTC?
Short-term holders currently control a notable portion of Bitcoin’s circulating supply. If these investors continue to sell, Bitcoin’s price may face further declines. The Fibonacci Retracement tool indicates that BTC’s next support level lies at $83,792. If this level fails to hold, the price could slip to $76,356.
However, if short-term sellers ease off, the bearish outlook could reverse. In that scenario, Bitcoin might reclaim its recent all-time high of $93,265 and aim for the $100,000 milestone.
