Bitcoin Recently Achieved a New All-Time High (ATH), Reigniting Bullish Sentiment Among Crypto Enthusiasts

Bitcoin recently achieved a new all-time high (ATH), which reignited bullish sentiment among crypto enthusiasts. However, as the price approaches new highs, investor skepticism is growing.

Bitcoin (BTC) recently hit a new all-time high (ATH), which ignited bullish sentiment among crypto enthusiasts.

However, as the price approaches new highs, investor skepticism is growing, and some investors are locking in profits, creating uncertainty about whether this rally can be sustained.

This analysis will examine the implications of Bitcoin’s Liveliness reaching its highest level in nearly four years and what the trends in new Bitcoin addresses suggest about investor activity.

Bitcoin Long-Term Holders Pulling Out?

Bitcoin’s Liveleliness, a key metric used to track the activity of long-term holders (LTH), has reached its highest level in nearly four years, according to a recent analysis by Ali in the Bearexplain Telegram channel.

This increase in Liveliness indicates that LTHs are beginning to sell, signaling that they may be securing their gains after Bitcoin’s recent price surge.

LTHs are typically seen as the backbones of Bitcoin’s price stability, and their selling behavior often suggests that investor sentiment is shifting toward skepticism.

When LTHs decide to sell, it marks a turning point in the market. Their selling can lead to increased market volatility and a potential price correction. With more LTHs exiting the market, Bitcoin faces additional pressure, which may hinder further price growth in the short term.

New Bitcoin Addresses Show Slowdown

The growth of new Bitcoin addresses has been highly volatile this month. The number of new addresses reached new highs earlier in the month, but now, the chart shows a sharp decline with the last two days seeing especially low numbers.

This slowdown in address growth suggests that fewer new investors are entering the market, and some existing holders are choosing to withdraw their funds.

It could indicate a purging of wallets, a move typically seen during periods of rising skepticism.

Compared to April, address growth has been considerably more erratic this month. As Bitcoin’s price climbs, investors are becoming more cautious and focused on securing their profits.

The volatility in new address growth reflects the uncertainty surrounding Bitcoin’s future price action, with investors remaining wary of the long-term sustainability of this rally.

BTC Price Not Too Far From ATH

Bitcoin’s price is currently at $106,708, just under 5% from its ATH of $111,980, which was reached last week. However, the path to reaching this level again depends largely on how investors react to the current market conditions.

If skepticism and selling continue, Bitcoin may face difficulty regaining its bullish momentum.

If the price continues to slide, Bitcoin may struggle to recover. A break below the support level of $106,265 could lead to further declines, potentially pushing the price down to $105,000 or even $102,734 in the short term.

However, if Bitcoin manages to hold above $106,265 and sees renewed buying interest, it could easily invalidate the bearish outlook. A breach of the $110,000 resistance level would provide the momentum needed to push through $111,980, paving the way for a new ATH.