Definition ∞ Mid-cycle investor selling describes the phenomenon where a significant portion of long-term holders or those who acquired assets early in a market cycle begin to sell their holdings before the cycle’s typical peak. This activity can indicate a shift in investor sentiment, profit-taking, or a re-evaluation of market conditions. It often leads to temporary price corrections or consolidation.
Context ∞ Mid-cycle investor selling is a closely watched on-chain indicator that provides insights into the conviction and profit-taking behavior of experienced market participants. This action can signal a pause in an upward trend or a potential re-distribution phase. Understanding this behavior helps analysts assess the durability of a market rally and identify periods of increased supply pressure.