Bitcoin rebounded in recent trading after a five-day decline that saw the cryptocurrency fall 5.7% from $82,300 to $77,620 between September 3 and September 8. Within the past 24 hours, Bitcoin has recovered 2.4% from those lows.
Open interest in Bitcoin derivatives has begun to increase, indicating that more market participants are entering the derivatives market. This activity could signal a local market bottom, though volatility may heighten with upcoming economic reports and rate hike expectations.
Long-Term Holder Activity Shows Profit-Taking
Long-term holders have reduced their Bitcoin holdings significantly since August began. According to market data, long-term holder supply has fallen by 98.5k BTC since the start of August, reflecting profit-taking activity as Bitcoin rallied above $75,000.
The Spent Output Profit Ratio crossed above one to reach 1.14 in September, indicating that long-term holders' realized profits exceeded realized losses. This metric further confirms profit-taking behavior among this investor group.
Technical Strength Amid Selling Pressure
Despite selling pressure from long-term holders, Bitcoin has maintained a bullish structure on the 4-hour chart. The recent retracement to $77,620 occurred just above the 78.6% retracement level, and the $82,850 swing high from May remains a key overhead resistance zone.
The fact that Bitcoin held up well despite long-term holder selling suggests that buying demand is absorbing the available supply. Bitcoin continues to hold above the $76,000 demand zone, maintaining a bullish technical position.
