Bitcoin Holders Stop Selling: Bullish Signal?

4 Answer

• The recent halt in long-term Bitcoin holder selling — the first sustained pause since mid-2025 — deserves close attention because it reflects evolving sentiment among one of the most structurally important cohorts in the BTC market. Long-term holders (LTHs), typically defined as wallets holding BTC for at least 155 days, control a large share of Bitcoin’s circulating supply and historically act as a stabilizing force. Their sell-off earlier in 2025 contributed to downward pressure on price as macro headwinds and profit-taking after the mid-year highs played out.

  
  

  On-chain analysts have noted the tapering of LTH selling over recent weeks, with net position changes turning positive for the first time since July. This suggests that holders at this level may be shifting from distribution into a more neutral or even accumulation mindset. In traditional cycle dynamics, decreased selling from long-term holders can coincide with diminished overhead supply, meaning there’s less pressure to dump during corrections. That often precedes periods of price stabilization or even rebound if demand conditions improve.

  
  

  However, it’s important to treat this signal with nuance. Reduced selling doesn’t automatically translate to stronger accumulation — it could simply represent a pause following significant prior distribution. Some datasets also show that overall LTH supply hit multi-month lows earlier in 2025, reflecting how much supply had already been released.

  
  

  In sum, long-term holder behavior is easing from a heavy sell bias, which structurally reduces one form of supply pressure. If this pause holds and is paired with rising demand signals, it could form the basis of improved market conditions. But alone it isn’t a guaranteed breakout signal — it’s a potential leading indicator that should be considered alongside liquidity, demand, macro trends, and broader on-chain flows.

  ProofProtector  · 2025-12-30 ·  10 days ago

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• A sustained LTH halt isn’t guaranteed. Some data suggests long-term holder supply did hit multi-month lows before this pause — meaning many have distributed already. We could still see renewed selling if price breaks support zones.

  ChainChampion  · 2025-12-30 ·  10 days ago

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• This pause in LTH selling could be a crucial inflection point. Long-term holders usually sell into strength and hold through dips — when they stop selling, it means they might think BTC is reasonably priced or even undervalued, which often precedes relief rallies.

  ChainChampion  · 2025-12-30 ·  10 days ago

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• This metric is one piece of the puzzle. Reduced selling by long-term holders reduces overhead supply, which is positive. But without broader demand (like rising ETF flows or retail return), it might not immediately change price direction.

  ProofProtector  · 2025-12-30 ·  10 days ago

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