Bitcoin Long-Term Holders Selling – Bullish Signal for BTC Price Surge

Analysts highlight a positive outlook as BTC shifts hands.

By Tylt Editorial Team

Jan 30, 2025

Jan 30, 2025

Bitcoin Long-Term Holders Selling – Bullish Signal for BTC Price Surge
Bitcoin Long-Term Holders Selling – Bullish Signal for BTC Price Surge
Bitcoin Long-Term Holders Selling – Bullish Signal for BTC Price Surge

Bitcoin's long-term holders are selling, signaling a bullish trend.

BTC exchange balance continues to decline, suggesting a supply crunch.

ETF-driven movements distort supply data but indicate strong demand.

Bitcoin's long-term holders, who have owned their coins for at least 155 days, are now selling, a trend historically linked to price rallies. Analysts suggest that when these holders offload their BTC, it often signals bullish momentum. Recent data shows that over one million BTC changed hands as Bitcoin's price surged past $100,000, with short-term traders absorbing the supply.

Despite the sell-off, the selling pace has slowed, reflecting a more measured approach. The total BTC held by long-term investors now sits at around 13 million BTC. Historical patterns suggest that sharp declines in long-term holder supply tend to coincide with strong Bitcoin rallies, as seen in early and late 2024.

At the same time, Bitcoin’s presence on centralized exchanges continues to decrease. The number of BTC on exchanges has dropped from over three million to 2.7 million in the last six months. This reduction in available liquidity is traditionally seen as a bullish sign, as fewer coins are readily available for quick sales. However, analysts note that a portion of these coins is being transferred into ETF-managed wallets rather than being withdrawn by individual investors.

The introduction of spot Bitcoin ETFs in the U.S. has changed market dynamics. While reduced exchange balance typically indicates a supply shock, many of these BTC holdings have merely shifted into ETF structures. These ETFs provide an alternative means of trading Bitcoin, allowing investors to buy and sell without direct involvement in crypto exchanges.

Despite the shifting dynamics, Bitcoin remains positioned for potential further gains. The consistent reduction of long-term holder supply, combined with a decreasing exchange balance, supports the notion of an impending price surge. If history is any indication, Bitcoin could see another rally in the near future.

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