According to data from September 5, the Bitcoin market experienced a sharp spike in volatility amid a large-scale profit-taking. According to analysts, the volumes reached $2.46 billion, which became a key factor in the price drop and increased selling pressure. Unlike short-term movements, the source of the sell-off became digital assets that had been held in investors' wallets for years.
The main contribution came from coins with a solid ownership history. In particular, 7636 BTC that had been inactive for 3–5 years, 7624 coins held for 12–18 months, and the last 2632, stored for 2–3 years, entered circulation. These data metrics from Spent Output Age Bands clearly indicate that long-term investors became key participants in the sell-off, which further increased pressure on the market.
Profit-taking by such categories of holders often serves as a signal for the end of the accumulation phase. In this case, the activation of old wallets coincided with a period of increased market activity, amplifying the scale of the correction. Investors who had held coins for years took advantage of the high price level to realize accumulated profits.
Data on Realized Profit & Loss shows that the trend of profit-taking began on August 30, when the market faced the first wave of sell-offs. However, by September 5, the scale of the process intensified, causing even more pronounced turbulence. The increase in trading volumes from long-term participants gave the correction a systemic nature.
Interestingly, the sell-off of old coins coincides with technical support and resistance levels previously marked by analysts. This increases the risk of short-term instability, as fundamental selling aligns with important liquidity zones.
Experts warn that while profit-taking by long-term holders increases pressure, it also cleanses the market of excess supply. With institutional demand remaining, this could lead to the formation of a new sustainable price range in the coming weeks.
