Bitcoin Long-Term Holders Sell 366k BTC: What This Might Mean for Future Price Movements

• In a notable shift within the cryptocurrency landscape, Bitcoin long-term holders (LTHs) have sold 366,000 BTC, reaching the highest level of sales since April, triggering market fluctuations.

• The significant offloading by LTHs has contributed to a 4.47% decline in Bitcoin’s value, a sharp turn from its recent upward momentum.

• According to insights from Glassnode, the surge in sales highlights a robust profit-taking stance among LTHs who have seen substantial gains.

The recent offloading of 366k BTC tokens by long-term holders raises questions about market stability, with Bitcoin valued at $94972 amid a 4.47% decline.

Who is selling Bitcoin?

Recent analyses reveal that Bitcoin’s LTHs are actively selling, resulting in a historic high of 366,000 BTC tokens sold. This notable selling activity is likely exerting pressure on the market, contributing to its current pullback.

Source: Glassnode

The increase in selling has been attributed to the attractive profit margins observed during Bitcoin’s recent rally. Specifically, holders from the 6 million to 12 million BTC cohort are leading this trend, with an average spend of 25,600 BTC tokens per day.

Source: Glassnode

This particular group has had an average cost basis significantly lower than the recent average market price. Capitalizing on the recent surge to nearly $99,000 allows these LTHs to reap substantial profits, suggesting that profit-taking strategies are at play.

Source: Glassnode

The analysis by Glassnode suggests that this selling wave from LTHs correlates with the ongoing corrections seen in the market.

Impacts on BTC Charts?

Despite the recent decline in BTC’s daily charts, comprehensive analysis indicates that Bitcoin remains in a bullish trend overall. This pullback provides an ideal environment for both whales and retail investors to accumulate more BTC.

Source: CryptoQuant

Recent figures indicate that Bitcoin’s Whale Exchange Ratio has dropped from 0.4 to 0.32, showing LTHs actively selling while whale investors are accumulating BTC. This trend indicates a bullish sentiment as whales are less likely to transfer their holdings for sale, often hinting at long-term investment strategies.

Source: CryptoQuant

Moreover, an increase in Bitcoin’s Fund Flow Ratio from 0.08 to 0.15 demonstrates rising buying pressure, indicating that inflows are outpacing outflows, which is a strong bullish indicator.

Source: CryptoQuant

The rising Stock-to-Flow (SFR) reversion further reaffirms this bullish trajectory, signaling greater market confidence in Bitcoin’s value thanks to continuous demand and adoption.

In summary, while Bitcoin LTHs are taking profits, overall market dynamics show strong accumulation behaviors, indicating a potential for future price gains. As Bitcoin aims to reclaim the $99,000 resistance, it could pave the way towards another all-time high.

Read Bitcoin’s [BTC] Price Prediction 2024-25

With current trends, Bitcoin’s prospects appear promising, suggesting that the resistance at $99,000 may soon become a pivotal point in its price trajectory.