As Bitcoin hovers around crucial support levels, industry experts express concerns about the possibility of a significant market correction. Renowned cryptocurrency analyst Ali, using the X platform, has drawn attention to a troubling pattern where about 5.45 million addresses collectively hold 3.03 million BTC, valued between $64,300 and $70,800.
Approximately 5.45 million addresses have accumulated 3.03 million BTC in the price range of $64,300 to $70,800, creating a substantial barrier to supply that could lead to a sharp correction for Bitcoin. If the price of BTC continues to decline, these holders may opt to sell to minimize losses, adding to the downward pressure.
The concentration of Bitcoin holdings establishes a significant barrier to supply, potentially triggering a massive sell-off if any of the major holders decide to cash in their profits by closing their positions.
Market indicators are signaling caution as Bitcoin navigates choppy waters. Following a more than 4% decline last week, the latest data shows Bitcoin trading at $64,252, reflecting a 0.7% increase in the past 24 hours. Analysts at CryptoQuant have highlighted the “Adjusted Spent Output Profit Ratio” (asopr) in conjunction with a 200-day moving average to assess the profit realization behavior of Bitcoin investors.
This indicator typically surpasses the 1.00 mark during bullish market phases, indicating that many investors are in profit and may hold onto their positions expecting further gains. Conversely, a rise to or above 1.08 often precedes a market downturn based on historical trends. With current asopr levels nearing 1.08, it suggests that Bitcoin may be on the brink of a similar retracement, calling for caution from traders and investors.