The distribution of whales and long-term holders continues to exert downward pressure, preventing cryptocurrency markets from reaching new highs.
Sustained selling by large Bitcoin holders is replicating the dynamics of the post-2000 Internet crash that suppressed tech stocks for more than a decade, analyst Jordi Visser says. The distribution of whales and long-term holders continues to exert downward pressure, preventing cryptocurrency markets from reaching new highs.
Similar patterns are occurring in Solana, Ethereum and Bitcoin, as venture capitalists and insiders prioritize liquidity over price appreciation, Visser said. He clarified that crypto would not require 16 years to recover, but used the historical comparison to illustrate current market mechanisms. The consolidation phase could be completed within a maximum of one year.
Sales to long-term holders have increased since October while demand has simultaneously contracted, Moreno noted. This mismatch keeps prices low while markets struggle to absorb distribution volume at high levels. Debate continues over whether Bitcoin has established support near $100,000 or is facing a potential decline towards $92,000.
The analysis follows growing concerns about the start of a Bitcoin bear market in October, leading to forecast revisions from analysts and investment firms. Several organizations have lowered their most bullish price forecasts in response to continued weakness.
Visser emphasized that the current dynamic represents a healthy split between early participants and new market entrants rather than a fundamental collapse. Consolidation strengthens market structure in the long term, although it creates frustration among short-term traders who expect an immediate price recovery.
Some analysts identify underlying trends forming around $100,000 for Bitcoin. Others argue that continued sales without a recovery in demand could drive prices down significantly before balance is restored between buyers and sellers in the market.
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