Bitcoin Long-Term Holders Show Signs Of Selling — Is A Reversal Imminent?

Recent on-chain data shows that a relevant class of Bitcoin investors known as long-term holders has continued to move out of their market ￰0￱ Actively Switching To Distribution In a November 1st post on social media platform X, popular on-chain analyst Burak Kesmeci shared an insight into the prevalent structural bias among Bitcoin’s long-term holders. Kesmeci’s analysis hinges on the Long-Term Holder Net Position Change metric, which tracks the net buying or selling behavior of Bitcoin’s long-term investors over a period of 30 ￰1￱ Reading: Bitcoin At A ‘Do-Or-Die’ Level As Cycle Faces First Real Test: Analyst A positive reading is usually interpreted as a sign that the LTHs are in a net accumulation phase, as there are more market participants within this investor class buying Bitcoin than those who are ￰2￱ the flipside, when the Long-Term Holder Net Position Change metric is negative, it means that the LTHs are in a distribution ￰3￱ explained in his post that there has been an increasing amount of momentum towards the sell side of the ￰4￱ the highlighted chart, around 400,000 BTC appears to have been sold off in the past 30 days.

Interestingly, the LTHs don’t seem to be easing off on their sales — a behavior which stands equally as a source of ￰5￱ a case where Bitcoin’s long-term investors do desist from selling their holdings, Bitcoin could put in a local price bottom, as this typically indicates renewed interest and ‘smart money’ positioning for the next cycle. However, if this distribution momentum continues to grow, the premier cryptocurrency could continue towards the downside, as its long-term holders continue to inject more bearish ￰6￱ 2.2% Supply Drop Relatively Modest — Analyst In another X post, crypto pundit Darkfost shed light on the implications of Bitcoin’s LTH behavior ￰7￱ to the analyst, the 2.2% “modest reduction” of Bitcoin LTH supply in October is not much to worry about, especially when compared to the levels seen in ￰8￱ of March 2024, Bitcoin’s LTH supply dropped by approximately 5.05%.

In December, there was an even higher decline of about 5.2%. Darkfost implied that the present distribution the market is seeing could therefore be a result of early profit taking, where the market could soon see a rebound of the Bitcoin price. Nonetheless, the long-term holder net position’s trend is one that should be monitored, as a move back towards neutral readings could signal the start of an accumulation phase and subsequent price reversal to the ￰9￱ of this writing, BTC is valued at approximately $110,750, with no significant movement in the past 24 ￰10￱ Reading: Bitcoin Hidden Setup — Triangle Support, Inverse H&S Signal A Powerful Reversal Featured image from iStock, chart from TradingView