- Bitcoin investors who have held BTC for 6 to 12 months have sold BTC worth $904 million.
- Distribution pressure from new cryptocurrencies is causing BTC to adjust downward.
In the past month, Bitcoin (BTC) continued trading in an upward channel. As a result, both short-term (STH) and long-term (LTH) holders have reaped significant profits.
The strong BTC price increase has helped 98% of total holders be in a profitable state, triggering a massive profit-taking wave.
Selling pressure from new cryptocurrencies
The large profit margin has paved the way for active profit-taking, significantly increasing selling pressure from all investor groups.
Notably, the current sales are strongly concentrated among young LTH groups – investors who bought BTC during the mid-cycle period (over the past 6 to 12 months). According to Glassnode, this group is showing decisive selling behavior.
Source: Glassnode
In just one day, this group realized profits up to $904 million, accounting for 83% of total realized profits – the second-highest level since the beginning of the year.
This figure is only behind the profit peak recorded in April this year. This trend indicates that in Q4 2024, mid-cycle investors have begun strongly distributing BTC in the market.
Source: Glassnode
Investors holding BTC for over 12 months only realized $324 million in profits – a significant decrease from the $1.2 billion sold at last week's peak.
The LTH SOPR indicator has also sharply dropped from 3.4 to 1.8, confirming the "resilience" of veteran holders against short-term profit-taking fluctuations.
The weakening in selling behavior demonstrates higher confidence and determination from Bitcoin "whales".
Source: CryptoQuant
The profit-taking from older coins has noticeably decreased, showing that Bitcoin "veteran holders" are temporarily withdrawing from the game. At this point, new coins are continuously sold, further increasing supply pressure in the market.
Implications for BTC prospects
The recent increase in profit-taking from new coins within a single day has strongly impacted Bitcoin's price behavior.
New investors continuously realizing profits caused BTC to drop from $108,990 to a dip of $106,853 – facing intense selling pressure.
This development pushes BTC back to the old accumulation zone, warning that the recently achieved upward momentum risks being reversed by distribution pressure.
The clear differentiation between new and long-term holders is making the BTC market unstable – new coins are being sold extensively, while old coins remain "hibernating".
If this state continues, with new holders continuing to sell and LTH persistently "holding coins", Bitcoin might consolidate sideways for even longer. LTH serves as a "buffer" for selling pressure, while short-term holders will limit price increases.
The BTC price scenario will fluctuate between $104,000 - $106,000 until one side shows a clear motivational advantage.
If BTC definitively breaks above the $107,000 threshold and moves towards a sustainable $110,000 level, the profit-taking momentum from new holders needs to cool down.
