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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Long-Term Holders Officially Enter Into Greed Territory, Is This Good Or Bad For Price?

Scott Matherson
Scott Matherson
4 months ago
3 mins read
Bitcoin

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In a recent development, crypto analyst Ali Martinez revealed that Bitcoin long-term holders have officially entered greed territory. This could benefit the price in the short term, although the long-term consequences could be severe. The greed phase suggests that long-term Bitcoin holders are now excessively optimistic about BTC’s future trajectory.

Bitcoin Long-Term Holders Officially Enter Into Greed Territory

In an X post, Martinez stated that long-term Bitcoin holders, having experienced every phase of the market cycle, are now letting greed take over. In terms of market sentiment, these holders have moved from capitulation to hope, optimism, and then belief and are now in the greed phase.

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This excessive optimism typically leads these investors to accumulate more BTC impulsively without considering rational analyses. In the short term, this greed phase is bullish for the Bitcoin price since this market sentiment could spark more buying pressure and drive the flagship crypto higher.

Bitcoin
BTC’s market dynamics in greed phase | Source: Ali Martinez on X

This buying pressure for Bitcoin already looks to be evident as on-chain analytics platform Santiment revealed that the number of wallets holding 100 to 1,000 BTC has broken an all-time high (ATH), rising to 15,777 wallets. The platform also mentioned that Bitcoin whales peaked up steam this week with the US inauguration and a new BTC ATH as transactions exceeding $100,00 surged to their highest level in six weeks. 

This greed phase is good for the BTC price, as it could continue to send the flagship crypto to new highs. However, in the long term, this excessive optimism could put BTC in overbought territory, eventually sparking a massive wave of sell-offs that would send the Bitcoin price tumbling. 

This greed phase among Bitcoin long-term holders looks to be sparked by optimism around Donald Trump’s pro-crypto administration and the strategic BTC reserve especially. This still poses a risk for the Bitcoin price since the flagship crypto could be trading well above its actual value if the BTC reserve isn’t eventually created. 

What Needs To Happen For BTC To Stay Bullish

In another X post, Ali Martinez warned that the Bitcoin price needs to stay above $97,530 to remain bullish. According to him, this price level is the key support level to watch for BTC, as holding above it is crucial to maintaining the current bullish momentum. Bitcoin is currently consolidating around this range after hitting a new ATH of $109,000 earlier this week. 

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Meanwhile, crypto analyst Crypto Rover highlighted the $102,000 support area as the most important for the BTC price right now. His accompanying chart showed that the flagship crypto could drop to as low as $98,000 if it drops below this support level. 

At the time of writing, the Bitcoin price is trading at around $104,900, up over 2% in the last 24 hours, according to data from CoinMarketCap.

Bitcoin
BTC trading at $105,375 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Unsplash, chart from Tradingview.com
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Scott Matherson
Scott Matherson

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Read more

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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