- Long-term Bitcoin holders switched from selling to accumulation, signaling renewed confidence and potential price appreciation.
- After a flash sell-off, 20,400 BTC was accumulated on Feb 23, 2025, as Bitcoin hit $96,292.85, reflecting strong market demand.
- Selling slowed in mid-January, and accumulation resumed in February, hinting at a bullish trend and possible supply shortage.
According to analyst Ali, long-term Bitcoin holders have reversed their behavior from selling to accumulation, reflecting increased market confidence. After a flash sell-off, data shows that they accumulated about 20,400 BTC. The shift can be seen as a green bar on February 23, 2025, reflecting the shift. Bitcoin’s price hit $96,292.85, reflecting strong demand and an upward trend.
Long-Term Holders Sold During the Rally
Between October and mid-January, long-term Bitcoin holders continuously reduced their positions. The red bars highlight these outflows. The most selling occurred in December when net position changes reached their lowest point. Meanwhile, The fact that Bitcoin’s price increased suggests that these investors took advantage of the market’s strength.
Selling pressure increased as Bitcoin’s price rose. This pattern suggests that long-term holders took profits amid rising demand. However, by mid-January, the selling momentum slowed. The red bars shrank, indicating a decline in net outflows.
Market Stabilization Leads to Renewed Accumulation
Bitcoin’s price stabilized between January and early February. It moved sideways with minor fluctuations, suggesting equilibrium in supply and demand. Consequently, long-term holders gradually reduced their selling activity.
On February 23, 2025, the trend shifted. The red bars disappeared, replaced by a small green bar. This shift confirmed that long-term holders resumed accumulation. Their renewed confidence aligns with Bitcoin’s sustained upward trajectory. If accumulation continues, further price appreciation may follow.
Supply Dynamics and Market Impact
Long-term holder’s behavior influences market cycles, impacting price trends. Historically, they sell during strong rallies and accumulate when prices stabilize. The current transition suggests a bullish sentiment among investors. Additionally, the market’s ability to absorb selling pressure highlights robust demand. Moreover, a possible trend reversal is indicated by the presence of a green bar. Strengthening buildup may result in a shortage of supply, which would raise prices even further.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
