Long-term Bitcoin Holders Unload Assets Amid Bear Market Pressures

Bitcoin's price has been under pressure due to the sale of long-term holdings, which some analysts believe is a sign that the cryptocurrency may be approaching a bear market bottom.

According to Compass Point analyst Ed Engel, long-term holders who have held bitcoin for at least 155 days have started selling in recent weeks. This 'capitulation selling' is a typical phenomenon seen in the latter half of a bear market, where even strong investors begin to sell their assets.

The sale of $2.4 billion worth of bitcoin over the past two days has raised concerns about the supply-demand balance, with 26% of bitcoin traded over the past 30 days coming from investors who bought above $90,000. Analysts are warning that if bitcoin falls below its current key support level of $65,000, it could lead to a further decline in price.

Strategy, the world's largest corporate holder of bitcoin, has also sold a small amount of 32 bitcoins worth around $2.5 million, which has added to market anxiety. However, some experts are cautioning that this sale may not be the decisive cause of bitcoin's price decline.