Key Points
- Long-term Bitcoin holders have been selling off their holdings, contributing to the cryptocurrency’s struggle to break resistance.
- This sell-off could impact Bitcoin’s near-term trajectory, with indicators like the Fear & Greed Index and HODL Waves showing significant trends.
Long-term holders of Bitcoin (BTC) have been selling off their holdings in the past month, marking the largest sell-off since April.
This comes as Bitcoin hovers near $93,000, prompting questions about whether these moves are a sign of profit-taking or a warning of a potential market correction.
Long-Term Holders Selling Bitcoin
The sell-off by long-term holders coincides with Bitcoin’s sharp rise to $93,000 earlier this month, sparking speculation about the reasons behind such a large sell-off.
Data from CryptoQuant showed that the Long Term Holders Net position Change chart was negative, with over 728,000 BTC sold in the past 30 days.
A similar sell-off by long-term holders in April led to a short-term price correction, raising questions about whether history could repeat itself.
Bitcoin Fear & Greed Index and HODL Waves
Another factor adding to the narrative is the Bitcoin Fear & Greed Index, which currently stands at around 75, indicating “extreme greed” in the market.
Such sentiment often precedes corrections, as overconfidence among investors can lead to unsustainable price action.
Data from Glassnode’s Realized Cap HODL Waves shows a significant shift in Bitcoin ownership, with younger coins—those held for less than six months—making up a larger share of the market.
This suggests new entrants or traders are absorbing the selling pressure from long-term holders, stabilizing Bitcoin’s price for now.
The market has shown resilience in holding key levels, with $90,000 acting as critical support.
However, the combination of extreme greed in the market and heavy profit-taking increases the risk of increased volatility.
The RSI (Relative Strength Index) for Bitcoin now stands at 61.44, indicating that the asset is approaching overbought levels.
Historically, these metrics tend to align with profit-taking behavior, especially when prices breach significant psychological thresholds.
As Bitcoin gets closer to $100,000—a psychological resistance level—investors should closely monitor the behavior of both long-term holders and newer participants.
Whether this is a mere consolidation phase or a prelude to a correction remains uncertain. For now, the Bitcoin market is balancing between bullish momentum and cautious retracement.