What happened?
Long-term Bitcoin holders have been cashing out, creating sustained sell-side pressure that’s kept price gains muted. On-chain data shows realized profits surged to about $1.7B per day while revived supply from dormant wallets neared $2.9B, and the average age of spent coins has risen. Analysts say this wave of selling—mostly from seasoned holders, not short-term traders—has become the main source of resistance to higher prices.
Who does this affect?
The selling mainly affects long-term holders who are taking profits and the buyers absorbing that supply, including institutions that have been accumulating. Traders and retail investors feel the impact through increased volatility and a market sentiment shift toward fear, as evidenced by plunging fear-and-greed readings. Exchanges, miners, and anyone with exposure to large BTC positions also face the consequences of heavier sell pressure and tighter trading ranges.
Why does this matter?
Sustained selling from long-term holders limits upside and can keep Bitcoin stuck below key resistance—it’s been holding around $108,700 with resistance just above $110,000. That persistent supply makes rallies harder and can push sentiment into “extreme fear,” which may delay a parabolic run or force a period of consolidation. If support holds and institutional accumulation continues, the market could stabilize and reopen the path toward higher targets like $120,000, but the short-term picture remains challenging.