Bitcoin (BTC) Long-Term Holders Are Selling Less, Which Could Soon Change the Market

When long-term holders (LTHs) slow down selling, it often leads to price stability and sometimes even growth. Let's look at why this is happening

As Bitcoin's price continues to hover around 12% below its all-time high, an interesting trend is emerging. Despite the lower price, long-term BTC holders are exhibiting a noticeably slower rate of selling. This phenomenon could have significant implications for Bitcoin's price trajectory.

While the precise reason for this slower selling speed is unclear, it could be related to the broader macroeconomic climate or the individual strategies of these long-term holders. Some might be hesitant to sell due to concerns over inflation or a preference for holding onto their BTC a bit longer to maximize their profits.

This slower selling speed is evident in the 30-day percent change in LTH supply, a metric that tracks the rate at which long-term Bitcoin holders are buying or selling their coins over a month. When the number increases, it indicates buying by these holders, while a decrease signifies selling. Currently, this measure has stalled, suggesting a slowdown in LTH selling.

This metric is crucial because it provides insight into the behavior of long-term holders, whose actions can influence Bitcoin's price. When these holders sell less, it tends to put a floor on BTC's price movements.

In the past, such slowdowns in LTH selling have often preceded periods of price stability or even growth. For instance, during the bull market of 2021, a similar trend emerged, ultimately contributing to Bitcoin's rally to new all-time highs.

If the same pattern holds true now, it could bode well for Bitcoin, potentially leading to a stabilization in its price. This, in turn, might attract new buyers seeking to capitalize on favorable market conditions.

According to the 30-day percent change in LTH supply, it appears that long-term Bitcoin holders are slowing down their sales, indicating less pressure on BTC's price. When LTHs sell less, it usually leaves room for the market to trend upwards.

This type of price movement has happened before, and it might happen again. Another good sign is that some investors are moving their BTC off exchanges, which shows they want to hold onto it for a long time instead of selling it soon.

Based on these observations, it's possible that Bitcoin's price might hold steady or even increase in the coming period. This could mark the beginning of a stronger recovery for the world's leading cryptocurrency. However, given the inherently volatile nature of the crypto market, it's essential to note that future price movements remain uncertain and subject to various factors. Investors are advised to monitor these trends closely and proceed with谨慎 and informed decision-making.