Insights

Experienced Bitcoin Holders Sell into Weak Demand Creating Major Price Friction

Veteran investors are taking profits, but new buying power is not strong enough to absorb the supply, stalling the price rally.
November 12, 20253 min

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Briefing

The core insight is that experienced investors are maintaining a high rate of profit-taking, but new capital inflows are insufficient to absorb this selling pressure, creating a supply friction zone that prevents a sustained price rally. This suggests the market is in a delicate standoff where veteran holders are distributing into weak demand. The single most important data point proving this thesis is that Long-Term Holders have liquidated over 371,000 BTC since July, with their exchange inflows running at nearly double normal levels.

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Context

The common question is whether the recent price rally can sustain momentum or if it will stall out near key psychological levels. Investors are wondering if big players are still accumulating or if the market has reached a temporary exhaustion point, particularly as price struggles to break through recent highs.

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Analysis

The key metric is Long-Term Holder (LTH) spending, which tracks coins held for over 155 days. When LTH spending increases, it means experienced investors are realizing profits; this is healthy only if new demand absorbs the supply. The current pattern shows LTH spending remains at “peak” levels, but the corresponding “apparent demand” is trending negative. This imbalance means the supply from veteran investors is flooding the market without enough new buyers to meet it, translating directly into a strong supply friction zone that has caused the price to retreat from key resistance.

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Parameters

  • Long-Term Holder Selling → Over 371,000 BTC liquidated since July. (The total Bitcoin sold by experienced investors, held >155 days, over the last four months.)
  • LTH Exchange Inflows → Nearly double normal levels. (The rate at which long-term holders are sending coins to exchanges to be sold.)
  • Key Resistance Level → $108,500 (85th percentile cost basis). (A price level where a significant portion of the circulating supply was acquired, now acting as overhead supply.)

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Outlook

This insight suggests the near-term market will remain range-bound or face continued downward pressure until demand strengthens. The current price ceiling is defined by the supply being sold by veteran holders. A reader should watch for a clear counter-signal → a sustained, multi-day increase in institutional ETF net inflows or a significant drop in LTH exchange inflows.

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Verdict

Bitcoin’s upward momentum is stalled by veteran investors realizing profits into a market with insufficient new capital demand.

Bitcoin on-chain data, Long-term holder selling, LTH spending peak, Weak market demand, Supply friction zone, Exchange inflow double, Price resistance wall, Short-term demand low, Market cycle dynamics, Profit-taking phase, BTC accumulation stalled, Institutional demand cool, Cost basis resistance, Supply absorption failure, Investor profit realization Signal Acquired from → beincrypto.com

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long-term holders

Definition ∞ Long-term holders are investors who acquire digital assets with the intention of retaining them for an extended period, typically exceeding one year.

price rally

Definition ∞ A price rally is a period of sustained and significant increase in the market value of a cryptocurrency.

key resistance

Definition ∞ 'Key Resistance' refers to a price level in financial markets where an asset's upward movement is historically expected to encounter significant selling pressure, preventing further price increases.

selling

Definition ∞ Selling represents the act of exchanging a digital asset for another currency or asset, typically with the objective of profit realization or loss mitigation.

exchange inflows

Definition ∞ Exchange Inflows denote the quantity of a specific cryptocurrency or digital asset that is transferred into centralized cryptocurrency exchanges.

cost basis

Definition ∞ The original purchase price of a digital asset, including any associated fees or commissions.

holders

Definition ∞ Holders are individuals or entities that possess and retain ownership of a particular digital asset, such as a cryptocurrency or token, over a sustained period.

investors

Definition ∞ 'Investors' are individuals or entities that allocate capital to digital assets with the expectation of generating a return on their investment.

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