Bitcoin Shows Strength Amid LTH Selling Institutional Demand Tightens Float

Bitcoin has demonstrated resilience in the face of long-term holder (LTH) selling, absorbing the supply without significant price impact. This phenomenon suggests a healthy market structure where older coins are being rotated to newer holders without panic, a typical sign before the next leg of a bull run. The market's ability to absorb LTH selling indicates strong hands are rotating out rather than capitulating, which is a positive indicator for the market's stability and potential for growth.

Strategy, formerly known as MicroStrategy, has been aggressively accumulating Bitcoin, now holding 3% of the total supply. This significant holding reflects a broader institutional appetite for Bitcoin, which could fuel the next major move in the cryptocurrency's price. Strategy's pro-cyclical accumulation strategy, aligning its largest purchases with bullish sentiment, has intensified over the past two years, further solidifying its position as a major player in the Bitcoin market.

Historically, July has been one of Bitcoin's strongest months, with a median return of 8.9% and a positive close in 8 of the last 10 years. This bullish track record, combined with the current structural support from LTHs rotating supply into strong hands and institutional demand tightening the float, suggests a potential breakout. If the market continues to absorb this supply as it has over the past month, a decisive breakout may be imminent, potentially surprising even the most optimistic bulls.