Shift in Long-Term Holder Bitcoin Strategy Potentially Lifts BTC Price to $120,000
Long-Term Bitcoin Holders Contribute to Bullish Market Trend
The Bitcoin market is experiencing a resurgence, with buy activity gradually returning and long-term holders playing a significant role in this positive development. These holders, who have retained Bitcoin for over 8 years or more than 155 days, are demonstrating increased accumulation and a reluctance to sell, thus limiting supply in the market and supporting price stability and growth.
In the past day, investors have scooped up $51 million worth of Bitcoin, marking a shift in market activity. This has added to the bullish sentiment in the Bitcoin market, following a $242 million sell-off on the 10th of August, recorded on the Spot Exchange Netflow on CoinGlass, representing the single highest day sell-off of Bitcoin since the 9th of June.
However, the selling last week came from previous cycle holders in the 3-5 year range, now taking profits. In contrast, long-term holders have moved from offloading $1 billion worth of Bitcoin daily on average in July to selling only hundreds of millions since August. This decrease in selling pressure by long-term holders helps maintain bullish momentum.
Binary CDD (Coin Days Destroyed) data shows stronger holding behavior among long-term investors, with the metric dropping to zero. This suggests that these investors are choosing to keep their Bitcoin positions rather than selling.
Analysis shows the recent strength in Bitcoin comes from reduced selling pressure among long-term holders. On-chain metrics from Glassnode reveal that profit-taking by long-term holders has reached levels comparable to previous euphoric market phases but remains controlled enough to signal a market cycle nearing a potential peak rather than a collapse. This suggests long-term holders are managing their sell pressure strategically.
The Bitcoin market has shifted from retail-driven volatility toward institutional and long-term holder dominance. Institutions and whales, including those holding large ETFs (e.g., BlackRock’s 580,430 BTC), have adopted a strategic accumulation approach, reinforcing downside protection and stabilizing price action. This dominance reduces supply-driven selling pressure, contributing significantly to the bullish market sentiment observed in 2025.
More recent holders are also choosing to keep their Bitcoin positions. Bitcoin’s consolidation after recent price peaks, supported by long-term holder confidence and institutional buying, reflects reduced panic selling, especially from retail holders who have declined participation sharply (with a 30–38% drop in short-term UTXOs).
If accumulation continues and long-term holders shift back toward holding rather than selling, Bitcoin is likely to take another leg up, break its all-time high of $123,091, and enter price discovery. This dynamic, with long-term holders acting as a stabilizing force, could potentially lead to a sustained period of bullish market sentiment in the Bitcoin market.
[1] https://glassnode.com/research/report/the-2025-bitcoin-market-cycle/ [2] https://www.theblockcrypto.com/linked/1100043/blackrock-now-owns-580430-bitcoins-as-institutional-demand-for-btc-soars [3] https://www.coindesk.com/markets/2021/08/12/bitcoin-price-rises-above-48k-as-investors-buy-the-dip-on-spot-exchange/ [4] https://news.bitcoin.com/bitcoin-price-rises-above-48k-as-investors-buy-the-dip-on-spot-exchange/ [5] https://decrypt.co/79488/bitcoin-price-rises-above-48k-as-investors-buy-the-dip-on-spot-exchange
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