"If you think logically, BTC must go down for a while to go higher, so don't stress."
The price of cryptocurrency king Bitcoin (BTC) early this morning hovered above $66,000 as on-chain data saw an increase in the number of long-term BTC holders transferring the digital asset.
CryptoQuant analysts point to changes in the supply rate of BTC from long-time holders to see how large investors view the current crypto market where now, that class of holders who sell their holdings in BTC have plunged the price.
There is no denying that BTC managed to reach an all-time high (ATH) due to the approval of the spot BTC ETF, but recent liquidations and macroeconomic factors have caused a drop in prices leading to weak investor sentiment in the crypto market.
Not only that, generating profit after BTC's price increase is also the main reason for the massive sell-off following the increase above $70,000 which is a wide margin for some holders who want to take profit.
However, the decline in BTC price is an entry point well before bullish activity occurs such as the halving event this month, so here it can be seen that the reduction in supply and bullish activity will push BTC to a new ATH.
Increased demand can help the price of BTC in the long term and experts also think that investors are selling their holdings to buy back the digital asset at a discounted price as miners are found to be transferring BTC from reserves to centralized exchanges.
As of this writing, BTC price has surged by 1.52% to $66,278 in the past 24 hours with a market capitalization of over $1 trillion but is still down 4.87% over the past week.
