Bitcoin is at a crossroads: mass selling by long-term holders is hitting the price

The Bitcoin market is going through a pivotal moment. While BTC is holding around $70.33K (with a 24-hour change of -0.59%), the latest data from NS3.AI reveal an alarming trend — long-term holders are selling assets at a rate not seen since August. This correlation between mass liquidation and the current price level is on the brink of a critical market breakthrough.

Long-term Holder Behavior: Signal of Fatigue or Opportunism?

Historically, the movements of long-term holders (so-called HODLers) serve as a barometer of market health. Increased selling activity suggests that even the most experienced market participants are beginning to adjust their positions. Experts from NS3.AI point out that the scale of this sell-off can be compared to a previous downward phase from a few months ago.

This dynamic raises questions: Is this portfolio shifting due to pessimism about Bitcoin’s prospects, or rather due to the need to realize profits at higher price levels? The answer to this question is at the center of current analyst debates.

Downward Pressure: Is Bitcoin Searching for a Bottom or Facing Further Decline?

Some industry experts warn that mass selling could trigger a cascade of further drops, as stop-loss chains will be activated. The intensification of selling pressure at support levels could serve as a potential catalyst for a bearish scenario.

At the same time, other analysts note that this type of selling activity might signal an approaching bottom of the bear market. They argue that when long-term holders offload their positions, it can lay the groundwork for future gains — an accumulation phase for more patient investors.

What’s Next for Bitcoin?

Bitcoin is now at a decision point. Monitoring the further movements of long-term holders will be crucial in determining whether BTC is heading directly toward testing lower support levels or stabilizing at current levels. Regardless of the direction, the current dynamics clearly show that the market is in a transitional phase, where each transaction can significantly impact the future price trajectory.