Bitcoin investors who held BTC for 6 to 12 months sold off BTC worth 904 million USD.
Distribution pressure comes from new cryptocurrencies, causing BTC to adjust downward.
In the past month, Bitcoin (BTC) continued to trade within a bullish channel. As a result, both short-term holders (STH) and long-term holders (LTH) have made significant profits.
The strong increase in BTC price has allowed 98% of total holders to be in a profitable state, leading to a surge in profit-taking waves.
Selling pressure from new cryptocurrencies
The significant profit margin paves the way for vigorous profit-taking activities. This greatly increases selling pressure from all groups of investors.
Notably, the selling is currently heavily focused on the young LTH group – those investors who bought BTC during the mid-cycle (from the last 6 to 12 months). According to Glassnode, this group is actively selling off.
Source: Glassnode
In just one day, this group realized profits of up to 904 million USD, accounting for 83% of the total realized profits – the second-highest level since the beginning of the year.
This figure is only second to the profit peak recorded back in April this year. This trend indicates that in Q4/2024, mid-cycle investors have started to aggressively distribute BTC into the market.
Source: Glassnode
Investors holding BTC for over 12 months only realized profits of 324 million USD – a sharp decrease compared to the 1.2 billion USD sold at the peak last week.
The LTH SOPR indicator has also plummeted sharply, from 3.4 to 1.8, confirming the 'fire resistance' level of veteran holders against short-term profit-taking fluctuations.
The weakening selling movements reflect a higher level of confidence and determination from Bitcoin 'whales'.
Source: CryptoQuant
The profit-taking from older coins has decreased significantly, indicating that seasoned Bitcoin 'holders' are temporarily withdrawing from the game. At this moment, new coins are continuously being sold, further increasing the supply pressure in the market.
Implications for BTC's outlook
The recent increase in profit-taking from new coins in just one day has strongly impacted Bitcoin's price behavior.
New investors continuously realizing profits caused BTC to drop from 108,990 USD to a low of 106,853 USD – facing intense selling pressure.
This development pushes BTC back to the old accumulation zone, warning that the recent upward momentum is at risk of reversal due to distribution pressure.
The clear differentiation between new holders and long-term holders is making the BTC market unstable – new coins are sold off significantly, while older coins remain 'hibernating'.
If this situation continues, with new holders continuing to sell and LTH persistently 'holding coins', Bitcoin may remain in a sideways accumulation for longer. LTH acts as an 'absorption cushion' for selling pressure, while short-term holders will limit the upward price movement.
The BTC price scenario will fluctuate between 104,000 – 106,000 USD until one side has a clear dominant momentum.
If BTC clearly surpasses the 107,000 USD threshold and moves towards a sustainable 110,000 USD, it will need profit-taking momentum from new holders to cool down.
Source: https://tintucbitcoin.com/bitcoin-truoc-ap-luc-chot-loi-lon/
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