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Bitcoinist 2025-03-10 05:30:30

Bitcoin’s Market Sentiment Takes A Turn As Long-Term Holders End Distribution Phase

The broader crypto market continues to experience heightened volatility, causing a robust sharp drop in Bitcoin’s price below the $85,000 mark after witnessing a slight upward push in the previous week. With BTC’s price undergoing strong bearish pressure, investors’ sentiment has taken a drastic turn, which might influence the flagship asset’s next trajectory in the near future. Long-Term BTC Holders Halt Massive Distribution Phase As Bitcoin struggles to reclaim key levels, a notable trend has been identified among investors, particularly long-term BTC holders. Seasoned on-chain and macro researcher Axel Adler Jr. spotted the change in sentiment among investors in his recent data research. Specifically, long-term Bitcoin holders appear to have completed their distribution phase, possibly setting the stage for renewed bullish momentum. This completion of the distribution phase suggests that selling pressure among long-term holders has subsided, limiting BTC’s supply in the market. According to the macro researcher, the distribution by long-term holders is the largest in recent years. After navigating key metrics , Axel Adler highlighted that activity metrics have shifted from high to low, particularly from selling and accumulation. The decrease in supply is usually a sign of a new market cycle and stabilization, representing a potential positive indication of the market. Furthermore, if the demand for BTC surges, the development might lead to a supply squeeze in the upcoming weeks. In another X (formerly Twitter) post , the expert reported that long-term holders have distributed over 1.715 million BTC from the $60,000 price level. After navigating the 30-day Net Position Change of Long-Term Bitcoin Holders, Axel Adler identified the massive distribution by the long-term investors. With the heightened distribution phase coming to an end, the metric has almost returned to neutral levels, suggesting that large-scale selling pressure has stopped. Should this trend continue, the possibility of BTC witnessing a rebound increases as long-term holders return to the accumulation phase . A Stop In Bitcoin’s Selling Pressure On Crypto Exchanges Despite persistent bearish performance in BTC’s price, investors and traders are becoming bullish about the asset’s prospects, leading to a reduction in selling pressure. Axel Adler revealed that active selling by long-term holders reached its end on crypto exchanges. Following the halt in selling activity on exchanges is the monthly Moving Average inflow, which has declined from 3.8% to about 1.4%. Since it lessens the downward pressure on Bitcoin, this minimal level of long-term holders’ selling activity is an encouraging sign for prices. At the time of writing, BTC was trading at $81,995, with a more than 5% drop in the last 24 hours. Investors seem to be capitalizing on the recent sharp decline as its trading volume has increased by over 24% in the past day.

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