Long-term Bitcoin holders turn into net buyers, easing selling pressure

Source: BlockMedia Original Title: Matthew Sigel “Long-term Bitcoin Holders Have Stopped Selling”… Signal of Easing Selling Pressure Original Link: https://www.blockmedia.co.kr/archives/1026662

Long-term Holders Shift to Net Buying, Significantly Easing Selling Pressure

Long-term Bitcoin holders have recently shifted to a net buying mode, and major selling pressure is easing. Analyst Matthew Sigel from a leading institution pointed out that the selling behavior of long-term Bitcoin holders has ceased from its highest level since 2019. A chief representative from a well-known crypto data analysis platform also shared related news, stating that long-term Bitcoin holders have stopped selling.

Easing of Major Selling Pressure and Long-term Holder Trends

The chart shared by Sigel shows changes in the 30-day supply of long-term holders. In on-chain data analysis, long-term holders (LTH) typically refer to entities holding tokens for more than 155 days. In the chart:

• Blue bars above the zero line: LTHs are buying and holding tokens, usually during bear markets or price declines
• Red bars below the zero line: LTHs are selling their holdings to the market, mainly during bull markets or at high price levels

Long-term holders often behave opposite to retail investors. They buy when the market is filled with “fear” and sell when “greed” dominates. Current data indicates that the large-scale profit-taking phase among these long-term holders has basically ended, meaning they have almost exhausted their chips for selling at the current price.

Increased Market Upside Potential

When long-term holders stop selling, the main selling pressure in the market disappears. In such cases, if demand remains steady or increases, the previously suppressed price due to large-scale selling will decrease, increasing the likelihood of market rise. In past market cycles, returning to the zero line after large-scale selling usually indicates a consolidation phase or a reversal into buying.

Bitcoin has fallen 5.19% so far this year. Notably, in years when major cryptocurrencies close the year in the red, the following year has averaged a 124.5% increase.

However, the CEO of a well-known digital asset firm stated, “For Bitcoin to turn bullish, it first needs to recover to the $100,000 level.”