Bitcoin returns to key sell zone as long-term holders slow profit taking
Bitcoin has moved back into a key sell zone, but long-term holders are cashing out less aggressively compared with 2025 levels. On-chain metrics show a slowdown in profit-taking among addresses that have held BTC for extended periods, reducing downward pressure from this cohort even as price re-enters areas where traders often sell. Short-term holders and traders remain active, contributing to volatility, but the reduced liquidation by long-term holders may cushion sharp declines. Market participants will monitor on-chain signals, exchange flows and stablecoin demand for directional clues. Primary keywords: Bitcoin, sell zone, long-term holders. Secondary keywords: on-chain metrics, profit-taking, volatility.
Neutral
The news is market-neutral because it describes offsetting forces. Bitcoin re-entering a sell zone is typically bearish—sell zones often trigger profit-taking and price pressure. However, the reported slowdown in cashing out by long-term holders reduces one source of downward pressure. Short-term holders and traders remain active, which sustains volatility but does not guarantee a clear directional move. Historically, similar patterns (price entering resistance while long-term holder selling diminishes) have produced range-bound or modestly corrective outcomes rather than large crashes or strong rallies. Key indicators to watch: on-chain long-term holder supply changes, exchange net flows, stablecoin inflows, and spot derivatives funding rates. Short-term implication: elevated volatility with potential sideways trading or shallow corrections. Long-term implication: if long-term holders continue to hold, it supports a stronger base under price, limiting downside and enabling eventual bullish setups if demand resumes.