Bitcoin’s latest pullback amid broader macroeconomic uncertainty may not see it rebound to its January $109,000 all-time high (ATH) as quickly as some hope, an analyst says.
“We should assume that we are in the pullback phase after the ATH and will likely continue to consolidate for some time due to liquidity needs,” CryptoQuant contributor XBTManager said in a March 5 analyst note.
Bitcoin long bids “viable” when long-term holders back to buying
XBTManager said once short-term holders of Bitcoin ( BTC ) — those holding for under 155 days — start selling, and long-term holders start buying again, long positions will “become viable.”
Until then, they said traders should be risk-averse when entering positions in the asset.
“Over the next few months, caution is advised, and highly risky trades should be avoided.”
In the days leading up to Bitcoin reaching $109,000 for the first time on Jan. 20 , before US President Donald Trump’s inauguration, short-term holders began increasing their supply, while long-term holders reduced theirs through selling, they explained.
Bitcoin’s $109,000 high on Jan. 20 led to a drop of around 100,000 BTC in long-term holder supply over the following 30 days, but an even larger decline followed in December when it first hit six figures.
On Dec. 1, long-term holder supply reached 15.2 million BTC, just four days before Bitcoin reached $100,000 on Dec. 5, according to Bitbo data . By Dec. 20, it declined to 14.7 million.
At the time of publication, long-term holder supply is 14.4 million BTC, a decline of 800,000 BTC since Dec. 1.
Bitcoin retraced below $100,000 on Feb. 4 amid fears of a trade war on Trump’s promised tariffs. It fell even lower to $85,000 at the Feb. 27 Wall Street open as markets digested confirmation of new US tariffs.
