Bitcoin Stuck in Range as Long-Term Holder Activity Declines, Suggesting Months of Consolidation

Bitcoin failed to hold above $70,000 after a brief breakout, falling back below that level in early trading on Wednesday and re-entering a five-week-long trading range. The current price is hovering in the middle of a wide $60,000 to $80,000 range, with market sentiment turning cautious.

According to CryptoQuant analyst Darkfost on X, the trading activity of long-term holders has decreased significantly, falling to levels typically only seen during bear market phases. This change is not a negative signal; instead, it indicates reduced selling pressure and that the market is entering a period of low volatility accumulation, preparing for a potential breakout in the future.

Analysts believe that the current pattern may continue for several months. If multiple technical signals simultaneously point to the same breakout range, the subsequent market movement is often accompanied by strong momentum. Another market observer, Matt Hughes, emphasized that Bitcoin has repeatedly encountered resistance above $71,000. Only a weekly closing price firmly above this level can be considered a valid breakout. The overall crypto market is stable today, with a total market capitalization maintained at around $2.45 trillion, which is basically consistent with the trend since February this year. There is a lack of significant capital inflows or outflows, reflecting that investors are waiting for the next directional signal.