Bitcoin continues to trade sluggishly around the $110,000 level and remains under pressure compared to gold.
Onchain data from Glassnode shows that selling pressure from long-term holders (LTHs) is intensifying. Glassnode defines LTHs as investors who have held bitcoin for 155 days or more.
Currently, LTHs have a combined approximately 14.5 million BTC, but they continue to reduce their positions. In the last few days alone, this cohort has sold around 100,000 BTC. Since the peak of their holdings, they have unloaded more than 300,000 BTC since the end of June.
Given that almost all LTHs are currently in surplus, the data suggests that there has been significant profit-taking since early October.
There are several theories as to why this sale is taking place. Historically, Q4 has been a seasonally strong period for bitcoin, and around 18 months after a halving event is typically considered the most bullish phase of the cycle. However, with the current cycle not following this historical pattern, some investors may exit positions due to concerns that the four-year cycle theory that has played out in previous cycles may not hold this time.
Glassnode data also highlights that whales are the primary distributors of bitcoin at present. According to the accumulation trend score by cohort, units with more than 10,000 BTC are in large distribution. Cohorts with between 1,000 and 10,000 BTC have a neutral stance with a score of 0.5, while all cohorts with less than 1,000 BTC are net accumulators. Whales have been consistent net sellers since August.
