The cryptocurrency market remains highly volatile, with Bitcoin experiencing sharp price swings. After briefly pushing higher last week, BTC faced renewed selling pressure, dropping below $85,000. However, a notable shift in investor behavior could indicate a turning point in market sentiment. Long-term Bitcoin holders, who have been offloading their assets for months, now appear to be stepping back from selling—a move that could significantly impact BTC’s future price movements.

Long-Term BTC Holders Halt Selling—A Bullish Signal?

Bitcoin’s price struggles to reclaim key levels, but seasoned investors are showing signs of renewed confidence. On-chain analyst Axel Adler Jr. recently highlighted an important trend—long-term BTC holders have significantly reduced their selling activity.

Historically, long-term holders play a crucial role in shaping Bitcoin’s price cycles. When they begin to offload large amounts of BTC, it often signals distribution and market uncertainty. However, once this distribution phase ends, selling pressure eases, potentially setting the stage for a bullish reversal.

According to Adler, this recent distribution phase has been one of the largest in recent years. His data analysis shows a significant reduction in selling activity, which could indicate that Bitcoin is transitioning into a new market cycle. If demand picks up in the coming weeks, the reduced supply of BTC could contribute to a price rebound.

What Does This Mean for Bitcoin’s Supply and Demand?

A decline in selling activity from long-term holders typically leads to lower Bitcoin supply on exchanges. When combined with increasing demand, this could create a supply squeeze—an event where a limited number of BTC is available for purchase, potentially driving prices higher.

Adler’s analysis further reveals that long-term holders have distributed over 1.7 million BTC since the price reached the $60,000 level. However, the latest data suggests that this large-scale selling has now slowed, with net position changes among these holders returning to near-neutral levels.

If this trend continues, Bitcoin could see renewed accumulation from long-term investors, reinforcing a bullish outlook for the asset.

Selling Pressure on Crypto Exchanges Declines

Despite Bitcoin’s recent downturn, there are signs that selling pressure on major crypto exchanges is easing. Adler’s research shows that selling activity from long-term holders has significantly declined, contributing to a drop in exchange inflows.

One of the key indicators reflecting this shift is the 30-day Moving Average inflow, which has fallen from 3.8% to just 1.4%. This reduction in exchange inflows suggests that fewer BTC are being sent to exchanges for liquidation, which could ease downward pressure on Bitcoin’s price.

While BTC remains under bearish pressure, increased investor interest is evident. Trading volume has surged by over 24% in the last 24 hours, indicating that some investors are capitalizing on the recent price dip.

What’s Next for Bitcoin?

With Bitcoin currently trading at around $81,995 after a 5% drop in the last 24 hours, the market remains uncertain. However, if long-term holders continue to limit their selling activity and demand rises, BTC could be poised for a potential recovery.

Key factors to watch in the coming weeks include:

• Bitcoin’s ability to reclaim key resistance levels – A push above $85,000 could indicate growing bullish momentum.
• Institutional and retail investor activity – Increased accumulation could strengthen support for BTC.
• Macroeconomic factors – Interest rate policies and global economic trends may impact Bitcoin’s trajectory.

While it is still too early to predict a strong rally, the decline in selling pressure among long-term holders provides a compelling case for a potential price rebound. As market sentiment shifts, Bitcoin’s next major move could be just around the corner.