Bitcoin Fails to Break $70,000..."BTC Sells Off Long-Term Holders After Breaking All-Time High"

Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, reclaimed the $70,000 level on Sunday evening, peaking at $70,284 on CoinMarketCap. However, it quickly gave up the $70,000 level as strong resistance and is now trading in the low $69,000s. Bitcoin recently suffered a sharp correction to $65,000 after failing to break through $70,000 on April 1, but recovered relatively quickly.

Investor sentiment remains bullish. According to crypto data provider Alternative's own estimates of the Fear-Greed Index, the Hang Index dropped two points from the previous day to 76, with the extreme greed phase persisting. The index is based on a scale of 0 to indicate extreme fear in the market, and 100 to indicate extreme optimism. However, the halving event is just 11 days away, and with increased mainstream media coverage, there are many expectations that the market will be more volatile.

Meanwhile, Checkmate (@checkmatey), principal analyst at on-chain analytics firm Glassnode, told X: "Bitcoin is taking a break from the all-time high, which is consistent with past patterns. Long-term holders are selling as they see new demand and increased liquidity. In the last two cycles, new demand for BTC absorbed the selling by long-term holders for about 6-8 months, driving the price higher. This time, the 14% drop in long-term holdings suggests that 40% of the process has taken place."