[Analysis] Bitcoin Long-Term Holders Cut Holdings for Seven Straight Weeks, but Market Absorbs Supply

Bitcoin long-term holders have reduced their holdings for seven straight weeks, but market demand is absorbing the supply and supporting the price uptrend, according to an analysis.

As of Sept. 28, the change in long-term holder holdings stood at -73,400 BTC, a sharp deterioration from -1,100 BTC a week earlier. Even so, current selling pressure remains well below the -1.07 million BTC recorded in November last year.

Long-term holders have also continued taking profits. LTH SOPR rose to 1.24 on Sept. 21, the highest level since January, and stood at 1.18 on Sept. 28. That means the Bitcoin moved on that date realized an average profit of about 18% versus its purchase price.

Adler wrote that long-term holders are reducing positions and locking in gains as prices rise, but that market demand has so far absorbed the incoming supply.

He added that if the decline in long-term holder holdings widens again to several hundred thousand BTC while Bitcoin's price advance stalls or reverses, it could be a sign that the market is struggling to absorb the selling.