According to the latest research report from blockchain data analysis platform Glassnode, despite long-term holders of Bitcoin (wallets holding for at least 155 days) taking profits last week amidst a market downturn, data shows that the selling pressure from these groups has begun to weaken, which may indicate a shift in market sentiment.
Glassnode analysts discovered that the “Binary Spending Indicator,” used to observe whether long-term holders are continuously offloading their holdings, has started to slow down and show signs of retreat. Meanwhile, the supply held by long-term holders has begun to rebound after months of decline.
Glassnode stated in its on-chain weekly report released on Tuesday:
Source: Glassnode
Glassnode also analyzed the proportion of long-term holders transferring their holdings to exchanges and observed a noticeable but brief distribution wave when Bitcoin fell below the $80,000 range. Analysts stated, “This indicates that some long-term investors chose to reduce risk and take profits amid rising volatility.”
However, data shows that the intensity and scale of each distribution wave during this period appear to be decreasing, which analysts suggest may indicate that long-term holders have reached a certain level of saturation, meaning “they have completed the major selling activities within the current price range.”
Source: Glassnode
Emerging Market Dynamics
Glassnode points out that market tops in bull markets are typically accompanied by significant selling pressure from long-term holders and strong profit-taking, which is usually balanced by buying demand from new investors. However, the institution has observed that despite Bitcoin’s recent decline, long-term investors are still retaining a substantial portion of their profits. Analysts noted:
Glassnode believes this could signal the emergence of market dynamics different from those in the past, as a relatively large amount of capital remains firmly held by long-term holders.
Source: Glassnode
