Bitcoin News Today: Bitcoin LTH supply drops 52,000 BTC mirroring 2024 distribution phase

Bitcoin’s long-term holders (LTHs) are showing early signs of distribution, a pattern reminiscent of the fall 2024 cycle, as the cryptocurrency consolidates within a tight price range. Traders and analysts are closely monitoring this shift, which could signal the maturation of a bullish trend or the onset of a correction. At $118,000, Bitcoin remains above key support levels but lacks the momentum needed for a breakout. The asset’s price action has tightened over recent days, with market participants awaiting a decisive move to confirm the next directional bias [1].

According to data from CryptoQuant, LTH supply has begun to decline, indicating these holders—typically seen as the most patient and strategic segment of the market—are gradually reducing exposure. This behavior aligns with historical patterns where LTHs accumulate during downtrends and distribute during periods of strength. Analysts note that such a shift often marks the later stages of a bull market, mirroring the distribution phase observed in fall 2024 when Bitcoin climbed from $65,000 to $100,000 [2]. During that period, long-term investors systematically sold into rising prices to lock in profits, a trend now reemerging.

Top analyst Axel Adler highlighted a significant development: LTH supply has already decreased by 52,000 BTC, a clear indicator of behavioral change. Adler emphasized that this reduction is occurring as Bitcoin remains trapped in a consolidation range, amplifying the likelihood of a near-term breakout. He compared the current scenario to the 2024 pattern, where distribution intensified with each upward price leg, suggesting a similar trajectory could unfold [3].

Technical indicators reinforce the market’s precarious balance. Bitcoin trades within a $115,724–$122,077 range, hovering near $118,817 on the 4-hour chart. While the asset respects key support levels, volume remains subdued, reflecting cautious sentiment among traders. The upper resistance at $122,000 has repeatedly failed to break since mid-July, and a clean breakout above this level with increased volume could reignite the uptrend. Conversely, a drop below $115,000 would invalidate the current structure and likely trigger volatility [4].

The timing of this distribution phase is critical. With Bitcoin nearing all-time highs, altcoins have begun exhibiting heightened volatility, potentially signaling capital rotation. While the impact on Bitcoin remains uncertain, the interplay between major assets will likely shape the next phase of market dynamics. Analysts caution that the current standoff will not persist indefinitely, with the coming days expected to deliver a decisive move that defines Bitcoin’s trajectory.

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Source: [1] [Bitcoin News: LTH Distribution Mirroring 2024 Cycle](https://www.newsbtc.com/bitcoin-news/bitcoin-long-term-holders-begin-distribution-mirroring-fall-2024-cycle/)

[2] [Bitcoin Long-Term Holder Behavior Analysis](https://www.newsbtc.com/bitcoin-news/bitcoin-long-term-holders-begin-distribution-mirroring-fall-2024-cycle/)

[3] [Axel Adler’s BTC LTH Insights](https://www.newsbtc.com/bitcoin-news/bitcoin-long-term-holders-begin-distribution-mirroring-fall-2024-cycle/)

[4] [BTC Consolidation and Resistance Analysis](https://www.newsbtc.com/bitcoin-news/bitcoin-long-term-holders-begin-distribution-mirroring-fall-2024-cycle/)