Since May, Bitcoin has been ranging between $100k and $110k with no major breakout. But while the price has been moving sideways, on-chain data tells us something more subtle is happening under the surface.
Looking at the Spent Output Age Bands (SOAB) and Binary CDD, we can see that long-term holders (LTHs)—those who held their coins for over 6 months—have been consistently spending their coins. In other words, some degree of selling pressure from LTHs is present.
SOAB shows when coins of different holding periods are moved, while Binary CDD tells us whether LTHs spent coins on a given day in a simple yes/no format.
The key point? Despite this steady LTH selling, the price hasn't broken down. This means the market is absorbing the sell pressure—implying new demand is coming in. For a bullish trend to sustain, this kind of healthy rotation (from strong hands to new buyers) is essential. In that context, LTH spending isn't a warning sign—it's actually a constructive signal.
Another thing worth noting: we're seeing more activity from coins held 1–3 years. That likely reflects profit-taking from participants who entered during previous cycle lows. Still, it doesn’t necessarily signal weakness. If anything, it suggests a transition of market leadership from older holders to newer ones—something we typically see in mid-to-late bull markets.
Overall, we’re likely in a phase of quiet redistribution—where sell pressure from LTHs is met with sufficient buy-side demand. This kind of hands-off transition often sets the stage for the next strong move.
Written by Yonsei_dent
