Bitcoin’s price dropped below $105,000 after hitting a new all-time high of $108,365 on Dec. 17. This short-term volatility comes ahead of the U.S. Federal Reserve’s anticipated interest rate announcement, where a 25 basis point cut is expected. Despite this dip, long-term Bitcoin holders (LTHs) have shown a bullish outlook. Profit-taking among LTHs dropped significantly, from $10 billion in late November to $3 billion by mid-December, even as Bitcoin’s price rallied 12% during this period. According to the crypto analyst Percival, this signals that most LTHs have taken their profits and are poised for further price increases. Additionally, a neutral market sentiment is reflected in the equilibrium zone of the 90-day market vs. realized price gradient oscillator chart.

The data indicates a healthy market dynamic where profit-taking has cooled while long-term holders maintain confidence in Bitcoin’s growth potential. Show Less