Bitcoin Long-Term Holders Sell Gradually Raising Volatility Concerns

Coin WorldFriday, Jun 6, 2025 9:23 am ET
1min read

Bitcoin's long-term holders have started to gradually sell their assets, according to a recent analysis. This trend has raised concerns about potential short-term price volatility, as these holders typically have a significant influence on the market due to their substantial holdings. The analysis identifies two key support levels that could be crucial in determining the future price trajectory of Bitcoin: $103,700 and $95,600. These levels are seen as potential barriers that could prevent further price declines, should selling pressure continue to mount.

The gradual selling by long-term holders suggests a shift in sentiment among these investors, who have historically been known for their "hodl" strategy, which involves holding onto Bitcoin for extended periods regardless of market conditions. This change in behavior could be attributed to various factors, including profit-taking, risk management, or a reassessment of their long-term investment thesis. However, the exact reasons behind this trend remain unclear.

The first key support level at $103,700 represents a psychological barrier for Bitcoin, as it is a round number that has often acted as a resistance or support level in the past. If the price of Bitcoin were to drop to this level, it could potentially attract buyers who view it as an attractive entry point. However, if selling pressure continues to build, the price could potentially break through this level and test the next support at $95,600.

The second key support level at $95,600 is based on historical price action and represents a more significant barrier for Bitcoin. This level has acted as both a support and resistance level in the past, and a break below it could signal further downside potential. However, it is important to note that support levels are not guaranteed to hold, and price action can often be unpredictable.

The gradual selling by long-term holders could also have implications for the broader cryptocurrency market, as Bitcoin's price movements often have a ripple effect on other digital assets. If Bitcoin's price were to decline significantly, it could potentially lead to a sell-off in other cryptocurrencies as well. However, it is also possible that other digital assets could decouple from Bitcoin and continue to perform well, regardless of its price movements.

In conclusion, the gradual selling by Bitcoin's long-term holders has raised concerns about potential short-term price volatility, with key support levels at $103,700 and $95,600 seen as crucial in determining the future price trajectory of the cryptocurrency. While the exact reasons behind this trend remain unclear, it is important for investors to remain vigilant and monitor the situation closely.