Jan Happel and Yann Allemann, who go by the X handle Negentropic, recently opined that long-term holders taking profits was one of the key reasons behind Bitcoin’s recent price correction.
Earlier this week, the leading cryptocurrency by market capitalization dipped all the way to the $90,000 level before paring some of its recent losses.
After recovering from the pullback, Bitcoin is currently changing hands at $95,719 following a 1.5% price increase over the past 24 hours.
Notably, the Glasnode founders noted that the profit-taking initiated by the long-term holders of the leading cryptocurrency was less aggressive compared to early 2024.
This, of course, indicates that a substantially smaller number of long-term holders started selling their coins despite the fact that Bitcoin came close to touching the much-coveted $100,000 level earlier this week.
The behavior of long-term Bitcoin holders suggests that Bitcoin might have already hit a local bottom.
“The lack of continuous realized profit spikes suggests fewer LTHs exited during this correction—possibly signaling we’ve already hit the bottom,” the duo said.
Is Bitcoin losing its dominance?
Altcoins have started substantially outperforming Bitcoin during the recent recovery, with the ETH/BTC pair making notable gains.
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However, the Glassnode cofounders believe that the crypto king is far from losing its market leadership.
“Bitcoin’s dominance has pulled back but hasn’t lost market leadership yet. To confirm a shift, we need a strong break below the Daily SMA 20—a key guide for the bullish trend,” they said in a recent post.