Briefing
The core insight is that Bitcoin’s most experienced investors, the Long-Term Holders (LTHs), have entered a significant distribution phase. This suggests that the “smart money” is actively taking profits, which injects new supply into the market and creates overhead resistance for the price. This profit-taking behavior is a classic mid-cycle signal, but its current intensity is a major headwind. The most critical data point is the net sale of approximately 400,000 BTC by LTHs over the last 30 days, confirming a structural shift from accumulation to distribution.
Context
The average investor is wondering if the recent price rally is sustainable or if a major correction is imminent. Is there enough new demand to absorb the profits of early buyers? This data directly addresses the supply side of the equation, revealing whether the most patient holders are still holding or if they are finally selling their supply into the market strength.
Analysis
The Long-Term Holder Net Position Change metric tracks the net flow of Bitcoin held by wallets that have not moved their coins for at least 155 days. When this metric is positive, LTHs are accumulating, which reduces the liquid supply and is bullish. A negative reading, as seen now, means LTHs are distributing, increasing the liquid supply and creating selling pressure.
The current pattern shows a sustained, negative trend, culminating in a 400,000 BTC net outflow in one month. This distribution is a clear signal that a significant amount of “old money” is exiting, which must be absorbed by new capital to prevent a price decline.
Parameters
- Key Metric – LTH Net Position Change → Net sale of ~400,000 BTC in the last 30 days. This tracks the 30-day change in the supply held by investors who have held their coins for over 155 days.
- Investor Class → Long-Term Holders (LTHs). Wallets holding BTC for 155+ days.
- Trend → Sustained Distribution Phase. Net selling, injecting supply into the market.
Outlook
This distribution phase suggests that the market is likely to face sustained resistance in the near term as LTHs continue to take profits. The immediate future depends on the strength of new demand → whether institutional or retail → to absorb this 400,000 BTC supply. A key confirming signal to watch is a move back towards neutral or positive readings in the LTH Net Position Change metric, which would signal the start of a renewed accumulation phase and subsequent price reversal to the upside. The current distribution must ease for the rally to continue.
Verdict
The persistent selling by long-term Bitcoin holders confirms a significant supply overhang, indicating a high probability of market consolidation or a deeper price correction.
