Bitcoin’s meteoric rise continues as the price hit a new all-time high of $94,374 on November 20, defying skeptics and pushing market optimism to new heights. However, signs of a potential sell-off are emerging as dormant Bitcoin holdings become active.
Bitcoin Price Action: A Battle for $94K
Bitcoin demonstrated resilience with bullish moves, rebounding from dips to $91,500 to achieve new record highs. This rally comes as both spot and perpetual markets witness increased bidding activity, signaling heightened demand.
Traders are cautiously optimistic about Bitcoin’s next move, with many eyeing $96,000 as a potential resistance zone. However, the consensus remains that Bitcoin might face a consolidation phase before attempting to breach the coveted $100K mark.
Dormant Bitcoin Reawakens: A Sell-Off Signal?
Data from CryptoQuant highlights a key risk: long-term holders are beginning to sell. The Coin Days Destroyed (CDD) metric, which tracks the dormancy of BTC, is inching closer to levels historically associated with market tops.
CryptoQuant warns traders to monitor the 15–20 million CDD range as a signal of potential distribution by long-term holders. While this doesn’t guarantee a market correction, it’s a metric that traders should keep in focus.
ETF Options Success Adds Fuel to the Rally
Adding to the bullish sentiment, the debut of options trading on BlackRock’s iShares Bitcoin Trust (IBIT) was an overwhelming success, with $1.9 billion in notional exposure traded on the first day. Industry experts link this surge to Bitcoin’s price momentum, with many betting on BTC crossing $100,000 by year-end.
Analysts believe that the success of Bitcoin ETF options trading is a game-changer. According to QCP Capital, the activity positions IBIT as one of the most active non-index options and underscores the growing institutional confidence in Bitcoin as a mainstream asset class.
What’s Next for Bitcoin?
While Bitcoin’s rally has been fueled by both institutional adoption and retail FOMO, market dynamics suggest a potential pullback in the near term. Traders should remain vigilant, monitoring metrics like CDD and key resistance levels, while also seizing opportunities during dips.
The combination of ETF momentum, institutional involvement, and macroeconomic conditions could set the stage for a significant price movement, whether it’s a short-term correction or a rally to uncharted territory.
