Weekly and monthly gains reached 3.6% and 0.63% respectively, keeping the broader bullish trend of Bitcoin intact.
Despite this sustainable growth, long-term Bitcoin holders have started to reduce their holdings.
This could be a break from traditional cycling habits. Here's why!
Cycle behavior shows signs of change
According to Santora, long-term Bitcoin holders have been steadily reducing their balances during the recent rise, which may be a departure from past cycles.
Balances of long-term Bitcoin holders
Source: Santora
Historically, long-term holder (LTH) sales have been more active during bullish stock markets. This time, the process has been slower, even as their total holdings reached cycle lows.
Net change in Bitcoin holder position
Source: Checkonchain
Checkonchain data showed that the net change in Hodler position was at -21.5 thousand BTC at the time of publication, after three months in negative territory, confirming the ongoing net outflows from this group.
Selling but without urgency
Interestingly, this distribution coincided with Bitcoin's price reaching historical highs. In previous cycles, continuous LTH selling exerted greater downward pressure.
However, at the time of writing this report, the selling risk ratio for long-term holders over the past 30 consecutive days has dropped to 0.0010033 - the lowest monthly level and well below liquidity risk levels.
Selling risks for Bitcoin LTH
Source: Checkonchain
This indicates that LTHs currently have little incentive to sell, even with historically high prices.
The decline in realized profits for LTH is evidence of this fact.
Realized profit from Bitcoin LTH
Source: Checkonchain
The net realized profit for long-term investors has continuously declined over the past three weeks, from 13.8 thousand Bitcoin to 5.6 thousand Bitcoin. This trend has often preceded additional price increases in previous markets.
Despite the decrease in balances, the selling rate has dropped to its lowest level in three weeks, reducing immediate pressure on price movements.
The road ahead for BTC
According to AMBCrypto analysis, long-term holders have been slowly reducing their holdings, separating from the previous bull market.
Despite the decrease in balances, the selling rate from long-term holders has dropped to its lowest level in three weeks, and the incentive to sell is at a recent low.
Historically, this market behavior reflects strategic profit-taking, and it is unlikely to have a significant negative impact on price movements.
