Bitcoin Struggles to Break $108K Resistance Amid Long-Term Holder Selling
Bitcoin’s price recently surged following the U.S. Senate’s decision to end the federal government shutdown, touching $107,500 before retreating to $105,500. Despite this promising spike, Bitcoin has been unable to surpass the $108,000 resistance zone, largely due to selling pressure from long-term holders (LTHs).
What’s Causing the Resistance at $108K?
According to on-chain data from Glassnode, the $108,000 level corresponds to the 85th percentile cost basis for Bitcoin. Historically, this level has acted as a strong support and resistance point during market fluctuations. Since the cryptocurrency market crashed in early November, this key level now serves as a robust resistance area, making recovery challenging.
Long-Term Holders at Peak Selling Levels
Crypto analyst Ali Martinez highlighted that long-term holders have sold approximately 371,000 BTC since July, with an average acquisition cost of $37,915. This indicates that many are realizing significant profits, taking advantage of higher prices. Additionally, exchange inflows from LTHs have doubled, creating substantial selling friction against upward price movement.
The LTH-SOPR (Spent Output Profit Ratio) metric has also shown a decline. This suggests these holders, while selling into strength, are capturing profits with narrower margins than before, indicative of waning confidence in sustained upward trends.
Current Market Sentiment
The attention remains on Bitcoin’s ability to break through the $108K zone. Analysts like XWIN Research Japan believe the range between $107K–$118K will continue to serve as a major barrier, with persistent supply flowing in from LTHs. The coming weeks are likely to test Bitcoin’s resilience as it faces mounting pressure from both profit-taking and macroeconomic uncertainties.
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Stay tuned for more updates as market trends evolve, and always make informed decisions before investing.
