Newer coins cause selling pressure, resulting in a BTC pullback.
Over the past month, Bitcoin [BTC] has continued to trade in an ascending channel; thus, many holders, both STHs and LTHs, have enjoyed significant profit.
Amid this price surge, at least 98% of all holders are currently sitting in profit, resulting in higher profit realization.
The rising profit margins mean these holders are also turning to profit realization. Inasmuch, both short-term and long-term holders are now realizing profit, causing significant sell pressure.
However, now selling activities have intensified among younger LTHs or mid-cycle buyers. According to Glassnode, mid-cycle buyers, those who have held BTC for 6 to 12 months, have stepped into the market and are aggressively selling.
This cohort has, over the past day, realized gains amounting to $904 million, accounting for 83% of all realized profit, the second-highest daily profit YTD.
The amount of profit realized is just behind the April top in terms of daily profits and indicates that in quarter 4, 2024, buyers have started aggressive distribution.
Bitcoin holders with a 12-month holding period realized just $324 million in profits recently — a sharp decline from the $1.2 billion they offloaded during last week’s peak.
This shift signals a slowdown in profit-taking from long-term holders (LTHs), confirmed by a notable drop in the LTH SOPR metric — from 3.4 to 1.8.
The decline suggests that while some selling is occurring, it’s far more restrained, reflecting growing confidence and conviction among older BTC holders.
Such a decline in profit realization from older coins suggests that seasoned Bitcoin holders are stepping back for now. Therefore, as of now, new coins are exiting the market with this cohort, causing significant selling pressure.
Over the past day, a sharp increase in profit-taking from newly acquired coins has significantly influenced Bitcoin’s price action.
As newer holders began realizing profits, BTC dropped from $108,990 to a low of $106,853, facing strong selling pressure.
This decline pushed BTC back into its previous consolidation range, signaling that the bullish momentum was short-lived and sellers have reentered the market.
The divergence in behavior between new and long-term holders (LTHs) is creating uncertainty: new coins are being sold, wpuhile older coins remain dormant.
If this trend persists — with newer holders selling and LTHs holding steady — Bitcoin is likely to remain in a consolidation phase. In this scenario, LTHs would absorb the selling pressure, while newer holders would cap any significant upward movement.
As a result, BTC may continue fluctuating between $104,000 and $106,000 until one side asserts dominance.
