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In a recent development, crypto analyst Ali Martinez revealed that Bitcoin’s long-term holders have officially entered greed territory. This could benefit the price in the short term, although the long-term consequences could be serious. The greed phase suggests that long-term Bitcoin holders are now overly optimistic about BTC’s future trajectory.
Bitcoin long-term holders are officially entering greed territory
In one X messageMartinez stated that long-term Bitcoin holders, after completing each stage of the market cyclelet greed take over now. In terms of market sentiment, these capitulation holders have moved on to hope, optimism, and then faith, and are now in the greed phase.
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This excessive optimism usually leads these investors to impulsively accumulate more BTC without regard to rational analysis. In the short term this greed phase is bullish on the Bitcoin price as this market sentiment could lead to more buying pressure and drive the flagship crypto higher.
This buying pressure for Bitcoin already appears to be evident, as on-chain analytics platform Santiment revealed that the number of wallets holding 100 to 1,000 BTC has broken an all-time high (ATH), rising to 15,777 wallets. The platform also mentioned that Bitcoin whales gained steam this week with the inauguration of the US and a new BTC ATH, as trades over $100.00 soared to their highest level in six weeks.
This greed phase is good for BTC price as it could continue to drive the flagship crypto to new highs. However, in the long run, this excessive optimism could land BTC in trouble purchased areawhich would eventually lead to a massive wave of sell-off that would send the Bitcoin price plummeting.
This greed phase among Bitcoin’s long-term holders appears to have been fueled by optimism surrounding Donald Trump’s pro-crypto administration and the strategic BTC reserve special. This still poses a risk to the Bitcoin price as the flagship crypto could trade well above its true value if the BTC reserve is not eventually created.
What needs to happen for BTC to remain bullish?
In another X message, Ali Martinez warned that Bitcoin price needs to stay above $97,530 to remain bullish. According to him, this price level is the main support level that BTC should pay attention to as it is crucial to stay above it to maintain the current bullish momentum. Bitcoin is currently consolidating around this range, after hitting a new ATH of $109,000 earlier this week.
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Meanwhile, crypto analyst Crypto Robber highlighted the $102,000 support area as the most important for the BTC price right now. Its accompanying chart showed that the flagship crypto could fall to $98,000 if it falls below this support level.
At the time of writing, the Bitcoin price is trading around $104,900, up over 2% in the past 24 hours, according to data from CoinMarketCap.
Featured image from Unsplash, chart from Tradingview.com