Bitcoin is entering what many consider the most pivotal week of this market cycle, not due to the looming U.S. election or the Federal Reserve’s upcoming interest rate decision, but because it’s on the brink of breaking all-time highs. If BTC crosses this milestone, it will enter “price discovery” mode, potentially sparking a massive rally across the entire crypto market.

This bullish anticipation is supported by data from CryptoQuant analyst Maartunn, who highlighted that Bitcoin Long-Term Holders sold an impressive 177,617 BTC in the last seven days.

This wave of selling from seasoned holders often signals a bullish phase, indicating they’re taking profits ahead of a potential market shift. This positioning aligns with BTC’s momentum near its peak, suggesting that many see current prices as ideal to lock in gains, possibly making room for fresh buyers and new demand.

With BTC so close to all-time highs, any upward breakout could shift the entire market’s sentiment and initiate a substantial bullish rally, marking this week as a critical period for BTC and the broader crypto landscape.

Bitcoin Entering The Bull Run Phase 

Bitcoin is entering the final phase of this cycle as it approaches all-time highs and flirts with uncharted territory. This pivotal moment has drawn significant attention from analysts and investors alike. 

CryptoQuant analyst Maartunn recently shared the Balance Change by Time Held chart, revealing that BTC Long-Term Holders (LTH) sold 177,617 BTC in the last seven days. This chart illustrates the movement of older BTC, typically owned by investors with a long-term perspective.

Long-Term Holders are generally less impacted by market volatility compared to short-term speculators. Their activity often serves as a contrarian indicator; they tend to buy and increase their holdings during price dips and sell when prices surge. As BTC’s price has risen over the past few days, there has been a noticeable uptick in LTH distribution, signaling a potential shift in sentiment among these seasoned investors.

This behavior is reminiscent of patterns observed during previous bull runs in 2018, 2021, and 2024, where LTH activity was critical in price movements. The current surge in BTC’s price and increased selling from LTHs suggests that these investors might be taking profits ahead of a potential breakout, reflecting their confidence in the market’s trajectory.

As Bitcoin approaches its all-time highs, the dynamics between Long-Term Holders and the broader market will be crucial in determining whether it can sustain momentum and enter a new price discovery phase. This week could set the tone for the future of Bitcoin and the entire cryptocurrency market.

BTC Nearing ATH

After dipping below this crucial level yesterday, Bitcoin is trading above the $68,000 mark. As it hovers just below $69,000, market participants closely watch the developments surrounding the US election. For bulls to reclaim momentum and push towards a bullish trajectory, BTC must break above the $70,000 mark in the coming days and challenge its all-time highs.

However, the current volatile environment and uncertainty surrounding economic factors could lead to price fluctuations that push BTC lower. If such a scenario unfolds, the key support level will be the $66,500 mark, a critical demand zone that upholds the bullish price structure. Maintaining support above this level is essential for sustaining the upward momentum and avoiding a deeper correction.

As the market awaits the election results, traders remain cautious, with price action likely influenced by the political landscape and broader economic sentiment. The coming days will be pivotal for Bitcoin as it seeks to establish a firm foundation to drive further gains and possibly enter a new price discovery phase.

Featured image from Dall-E, chart from TradingView