Bitcoin Long-Term Holders Ease Selling, Boosting Price Momentum
Recent data shows Bitcoin long-term holders have reduced their net balances by 21,500 BTC. Despite a 2.43% daily price dip to between $118,440 and $122,312, Bitcoin maintained weekly and monthly gains. Unlike previous bull cycles, Bitcoin long-term holders are selling less aggressively, easing sell pressure. Realized profits have declined, pointing to a shift in market behavior that could support price stability. Key metrics suggest long-term holder balances hit cycle lows while selling rates remain muted. Traders can interpret this trend as a bullish signal with potential for sustained upward momentum. Monitoring long-term holder activity and realized profit trends will be crucial for anticipating future price movements.
Bullish
Decreased sell pressure from Bitcoin long-term holders often signals bullish market sentiment. Historically, when LTHs slow their selling pace during price rallies—such as in late 2020—prices sustained upward trends. The current drop in realized profits and net balances suggests holders are reluctant to realise gains heavily, supporting price stability. In the short term, reduced supply on exchanges can mitigate sharp declines and foster a bullish bias. Over the long term, sustained holding by LTHs can tighten circulating supply, creating upward pressure if demand remains constant or increases. Consequently, this trend is likely bullish, encouraging traders to anticipate continued price appreciation.