Bitcoin continues to demonstrate remarkable resilience above $103,000 despite increasing selling pressure from long-term holders (LTHs). This development comes as whale profit-taking signals reach concerning levels, adding another layer of complexity to BTC’s current market position.
Long-Term Holder Supply Shows Concerning Trend
According to Glassnode data, Bitcoin’s long-term holder supply has declined for the second consecutive time in May 2025, marking a significant shift in market dynamics. This follows a substantial accumulation period that saw LTH supply increase from 13.66 million to 14.29 million BTC between March and early May.
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Key Metrics Signal Market Shift
The LTH Spending Binary Indicator has surged to 0.43, suggesting increased selling activity among veteran investors. This metric historically precedes local market tops, warranting careful observation of current market conditions.
Realized Price Analysis
Despite selling pressure, the realized price for long-term holders has risen to $45,340, indicating strong underlying conviction. This metric represents the average purchase cost of Bitcoin held for over 155 days, with recent data showing accumulation occurring between $90,000-$100,000.
Market Implications and Future Outlook
While the current supply reduction doesn’t necessarily signal market weakness, it adds complexity to Bitcoin’s trajectory. Technical analysis suggests potential for continued upward movement, provided key support levels hold.
FAQ Section
What does the LTH supply decline mean for Bitcoin’s price?
The decline in LTH supply typically indicates profit-taking behavior but doesn’t necessarily predict a market downturn. Historical data shows mixed correlations between LTH supply changes and price action.
How significant is the current selling pressure?
The 0.43 reading on the LTH Spending Binary Indicator suggests moderate selling pressure, though still below historical peak levels that preceded major market corrections.
What’s the significance of the $45,340 realized price?
This price level represents the average cost basis for long-term holders, indicating strong conviction among veteran investors despite recent selling activity.