Bitcoin (BTC) Shows Reversal Signals as LTH Sell-Side Risk Falls

Bitcoin (BTC) shows signs of a potential market reversal as long-term holder (LTH) selling pressure is at historic lows, which should alleviate pressure and lead to a potential reversal. Support levels are being tested, which is a good sign.

At press time, Bitcoin is trading at $85,488, with a 24-hour trading volume of $59.19 billion and a market capitalization of $1.75 trillion.

Over the last 24 hours, BTC has fallen by 4.01%, reflecting a consolidation period after recent swings. Despite the short-term dip, key indicators suggest the cryptocurrency may be positioned for an upward move.

Source: CoinMarketCap

The long-term holder sell-side risk ratio is a measure that assesses the probability of long-term holders selling their assets at the current prices. A high ratio increases the selling pressure, causing the prices to go down. A low ratio implies that the LTHs are not likely to sell, thereby reducing the major hurdle to the growth of the value.

Bitcoin Reversal Triggered by LTH

Crypto analyst BATMAN explains that the LTH sell-side ratio is at its lowest point historically and that this has been a precursor to some major reversals in the price of BTC in the past three years. “When this indicator hits this range, it means a big bounce in BTC is coming,” BATMAN said.

Source: X

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Bitcoin Tests Support Before Rally

Adding to this, More Crypto Online explained that BTC is still testing the critical support zone. The analyst explained that wave (B) is not yet over, and wave (C) of (B) might form another low before the next rally starts. This means that Bitcoin might experience some minor dips before the next rally.

Source: X

The fact that selling risk has been very low in the past, combined with ongoing support testing, indicates that Bitcoin may be at an important point. Investors and market observers are paying close attention to the price action, as a move above the current levels may attract buyers, thereby causing the price to rise.

Overall, while short-term ups and downs are always possible, the current setup for Bitcoin suggests that there is a higher chance of a market reversal.

As long as these support levels hold up and long-term holder selling is low, Bitcoin may be on the cusp of yet another big move higher, which will once again capture the interest of the wider crypto community.

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