Bitcoin (BTC) Slips Below $93K as Long-Term Holders Continue to Chase Profits

Leading cryptocurrencies slid further Tuesday, as long-term investors continued to chase profits.

Major cryptocurrencies fell further Tuesday evening, as long-term Bitcoin holders continued to sell their coins in droves.

Bitcoin fell to an intraday low of $90,770 before recovering to $92,500 in overnight hours. The corrective action has wiped all of the gains made over the week, halting the leading cryptocurrency’s rise to $100,000.

Long-term Bitcoin holders have offloaded 728,000 coins in the past 30 days, marking the largest sell-off since April.

Long-term holders have offloaded 728,000 #Bitcoin in the past 30 days.

This marks the highest sell-off since April. pic.twitter.com/oWqqgIUeSR

Over $364 million in long positions were liquidated in the past 24 hours, out of a total of $477 million. Bitcoin's Open Interest also declined by over 5% in the last 24 hours.

That said, the number of Binance traders going long on Bitcoin still heavily outpaced those betting against the asset, according to the Long/Shorts Ratio indicator.

Additionally, around $695 million in leveraged shorts risked liquidation if the apex cryptocurrency rebounds to $98,000.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.18 trillion, following a contraction of 2.29% in the last 24 hours.

Stocks climbed to new records Tuesday. The Dow gained 123.74 points, or 0.28%, to close at 44,860.31, while the S&P 500 gained 0.57% to end at 6,021.63. Both the broad-based indexes closed at record highs. Tech-focused Nasdaq added 0.63% higher to close at 19,175.58.

Investors parsed the minutes from the Federal Reserve meeting, which revealed a consensus among policymakers that inflation was gradually reducing.

Market participants raised the odds of a 25 basis-point cut in next month's FOMC meeting to 57.7%, up from 52.3% a day earlier, according to the CME FedWatch tool.

The personal consumption expenditure (PCE) data, considered the Fed's preferred inflation gauge, is slated to be released Wednesday.

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Analyst Notes: In a note shared with Benzinga, Haider Rafique, Global Chief Marketing Officer at cryptocurrency exchange OKX, commented on why Bitcoin was fumbling around the $100,000 mark.

“There’s definitely profit-taking at these levels. The average holding price is around $30,000, representing a two to three-times upside for investors. So, there’s significant sell pressure, but we also see equal buyback pressure," Rafique stated.

He added, "Many people have had $100,000 as a price target for liquidation. We’re seeing institutions like MicroStrategy buying and holding significant supply, which naturally reduces available liquidity on exchanges and creates upward momentum.”

Widely-followed cryptocurrency analyst Ali Martinez spotted a ‘buy signal’ from the TD Sequential indicator on Bitcoin's hourly chart.

Moreover, with the Relative Strength Index (RSI) forming a higher low, a bullish divergence was witnessed, potentially helping Bitcoin to rebound to $95,000-$96,000.

The TD Sequential presents a buy signal on the #Bitcoin $BTC hourly chart, while a bullish divergence forms against the RSI, which could help #BTC rebound to $95,000 – $96,000!

Join me in this trade by signing up to @coinexcom using my referral link https://t.co/73n8mW9Y5p. pic.twitter.com/lKozxI8JVP

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