Record Sales Occur in Bitcoin: Analyst Calculated When the Pressure Will End - Coin Bulletin

CoinDesk Global analyst Van Straten emphasized that the inability of Bitcoin to exceed 100,000 dollars is due to the record-level profit realization of long-term investors and that these sales are reshaping market trends.

According to CoinDesk Global analyst Van Straten's information, Bitcoin (BTC) approached the psychological level of $100,000 on November 22nd, but failed to surpass this level and experienced a 7.6% loss.

This is considered one of the biggest declines seen since the sharp price movements during the period when Donald Trump won the US presidential elections. After Trump's election victory, Bitcoin showed a rapid rise to record levels of $66,000.

However, Van Straten noted that such price corrections are normal for bull markets. In bull markets, Bitcoin can often experience drops of between 20% and 30%, which help balance the risks in the market by reducing excessive leverage usage.

Historical Peak in Bitcoin Short Sales

According to Van Straten's analysis, one of the main reasons why Bitcoin couldn't surpass $100,000 was the intense profit-taking by investors. Referring to Glassnode data, the analyst stated that on November 21st, a profit-taking of $10.5 billion occurred, reaching the highest level in Bitcoin history.

A large part of these sales originated from long-term investors (LTH) defined as 'smart money' by Glassnode. The LTH group generally prefers to buy Bitcoin when prices are low and sell when there is excessive optimism or fear in the market.

Correction Rates Decrease with Each Cycle

Van Straten pointed out the decreasing correction rates in each cycle, drawing attention to the previous bull markets. For instance, the decline rate, which was 25.3% in 2017, had decreased to 13.4% in 2021 and further down to 6.51% at the beginning of 2024.

Currently, this rate is at %3.85 level. If this trend continues, it is estimated that LTH group may experience another decrease of %1.19 (163,031 BTC) in Bitcoin supply, and their total supply may drop to 13.54 million BTC.

Van Straten noted that in each correction cycle, higher lows and highs in Bitcoin supply are observed, indicating that long-term investors could further increase their influence on the market.