Bitcoin's long-term holders (LTHs), often seen as the market's most resolute participants, are showing signs that their prolonged selling spree might be nearing its end. Recent on-chain data reveals a significant moderation in selling pressure, hinting at a potential shift in market dynamics as Bitcoin's price stabilizes.
Long-Term Holders Signal a Market Shift
Analysis of the Bitcoin LTH Net Position Change, an indicator tracking the monthly net flow of BTC in and out of wallets held for over 155 days, suggests a pivotal moment. This metric, which turned deeply negative in late 2025 as Bitcoin experienced a bearish shift, has begun to rebound from its lows. While still indicating net selling, the severity of the outflow is notably easing. This trend is particularly significant given that LTHs historically tend to sell less the longer they hold their coins, representing the market's steadfast core. The recent dip to around $60,000, however, triggered even some of these "diamond hands" to offload, momentarily intensifying the distribution.
Navigating Volatility: Profit-Taking and Price Retracement
Despite the resilience typically associated with long-term holders, the market remains susceptible to profit-taking. Another key metric, the Net Realized Profit/Loss, illustrates this fragility. During Bitcoin's rally on Monday, the 12-hour moving average of this indicator surged above $5 million per hour, signaling substantial profit realization that capped previous recovery attempts. This asymmetric behavior, where selling accelerates during price drops and profit-taking intensifies on rallies, underscores the delicate balance of current demand. Following Monday's high, Bitcoin has experienced a minor retracement to approximately $68,500, with analysts closely watching whether the reduced LTH selling pressure can translate into a more sustained upward momentum or if more distribution from seasoned holders is yet to come.
