Bitcoin's Long-Term Holders Sell 20,000 BTC Amid $100k Price Battle

Bitcoin’s long-term holder (LTH) supply has been declining, as indicated by a downward trend in the LTH supply percentage. This shift suggests that some long-term holders are exiting their positions, which could potentially develop into a significant local top if retail demand remains weak.

Examining Bitcoin’s weekly chart reveals a range-bound price action characterized by liquidity traps and a significant level of uncertainty. This uncertainty is reflected in the behavior of Bitcoin’s long-term holders, who are currently selling into strength rather than buying during panic.

Key Bitcoin cohorts, particularly mid-size whales holding between 100 and 1,000 BTC, have been in distribution mode, with net outflows increasing over the past few weeks. Since May 10th, approximately 130 BTC have been offloaded from this cohort, translating to around $13.5 million in realized value at an average price of $103.5k. This marks the first sustained net outflow in two months, indicating that smart money may be fading strength rather than chasing upside.

Despite the recent decline in LTH supply, Bitcoin’s price has remained relatively stable, hovering around $104.6k. However, the momentum is shifting, with LTH-held supply declining by roughly 20,000 BTC in just under a week. This signals a meaningful shift in long-term holder behavior, as these aged coins are now flirting with breakeven or slight unrealized losses. If Bitcoin drops below the six-figure mark, more aggressive sell-side pressure could be expected.

On a weekly basis, Bitcoin has tested the $100k handle twice, demonstrating heavy sell-side pressure. However, bears have failed to force a clean break below this level, indicating textbook resilience. Net outflows tell the story: at around $104k, demand kicked in hard, with nearly 10,000 BTC pulled off exchanges. This active dip-buying suggests that retail capital is treating this level as value territory, betting on a reload before the next leg up. Institutions are also backstopping the move, absorbing the distribution from major Bitcoin cohorts like mid-size whales.

Despite this resilience, Bitcoin is still in a battle for control. Holding the $100k level is crucial as it prevents capitulation cascades and keeps FOMO fueled. Therefore, it is essential to closely monitor these flows and supply dynamics to determine if the bulls hold the edge or if the bears gear up for round two in the coming days.

In summary, while there are signs of long-term holders exiting their positions and mid-size whales distributing their holdings, Bitcoin’s resilience at the $100k level suggests that it is unlikely to fall below this mark soon. The active dip-buying by retail capital and institutional backstopping indicate that there is still significant demand for Bitcoin, which could prevent a further decline. However, the situation remains fluid, and close monitoring of supply dynamics and market flows is necessary to gauge the future direction of Bitcoin’s price.