Mid-Cycle Holder Selling

Definition ∞ Mid-Cycle Holder Selling describes a phase within a market cycle where long-term investors, who typically hold assets for extended periods, begin to divest some of their holdings. This selling activity occurs after an initial price surge but before the absolute peak of a bull market, often to realize profits or rebalance portfolios. It indicates a strategic distribution by experienced participants, distinct from panic selling or end-of-cycle exhaustion. This behavior can introduce temporary downward pressure.
Context ∞ Reports on mid-cycle holder selling are frequently found in on-chain analysis and market commentary, providing insight into the behavior of seasoned investors. News often highlights this trend as a signal of potential market consolidation or a precursor to further price movements. Understanding this selling helps differentiate between short-term speculation and long-term strategic positioning.