Bitcoin Long-Term Holders Slash Selling by 60%

Bitcoin holders have significantly reduced their profit-taking activities, with a 60% decrease in selling compared to the $90-100k level. This shift in behavior suggests that long-term investors are holding onto their Bitcoin, indicating higher confidence in future price increases. According to Axel Adler's analysis, long-term holders are currently selling 40k BTC per day, down from the previous level.

This change in sentiment among long-term holders is significant, as it reduces the number of coins entering the market, thereby decreasing selling pressure. With reduced selling pressure between $90-100k, long-term holders are now eyeing $120k as the next price level to start selling again. At this price level, LTHs would secure a 500% profit on their Bitcoin investment, enticing them to sell despite market conditions.

Bitcoin's long-term holder SOPR (Spent Output Profit Ratio) has dropped from a high of 5.7 to 2.7 over the past 10 days, indicating that long-term holders are selling at a 2x cost basis but not as much as before. Previously, BTC traded above $100k with LTH SOPR remaining above 2.5 but below 3. If the SOPR continues to rise and surpasses 3, an increased profit-taking behavior could be observed, leading to potential price drops.

Bitcoin's Mayer Multiple has declined to 1.2, indicating that BTC is trading near its 200-DMA, which is within its fair value. When Mayer's Multiple is moderate, long-term holders reduce accumulation but still hold strong. The current price level provides a better opportunity for LTHs to accumulate rather than sell.

Bitcoin's Large Holders Netflow to Exchange Netflow Ratio has reduced from 5.59% to 0.92% over the past two weeks. This drop implies that large holders are transferring less of their BTC holdings to exchanges, meaning they are not selling as much. Since most whales are also LTHs who accumulate during bear markets and sell in bull markets, this reflects less profit-taking behavior from this group.

The prevailing market conditions suggest that profit-taking behavior is cooling down, especially among long-term holders. When LTHs reduce profit-taking activity, it reduces selling