Bitcoin Market Calm As Long-Term Holder Sell-Side Activity Dries Up, Bullish Phase Returning?

bitcoinistPublished on 2026-01-21Last updated on 2026-01-21

Abstract

Bitcoin's price recently fell below $90,000 amid a broader market downturn, yet investor sentiment remains strong. A key indicator is the sharp decline in selling pressure from long-term holders, whose sell-side activity has dropped to a yearly low. This suggests strong conviction in future price gains. Similarly, large investors (whales) are reducing Bitcoin transfers to exchanges like Binance, indicating decreased selling interest. Analysts note that the last time long-term holder selling was this low, Bitcoin eventually rallied to a new all-time high. Current market behavior points to potential bullish momentum ahead as holding patterns dominate.

On Tuesday, Bitcoin took a hit with its price losing the $90,000 level once again due to a general market drawdown. Even with the price of BTC experiencing a pullback below the pivotal level, investors’ sentiment remained strong, as evidenced by a sharp drop in selling pressure across the market.

Selling BT Long-Term Bitcoin Investors Falls Drastically

The Bitcoin price movement has turned bearish as the crypto market becomes increasingly volatile, but investors are demonstrating an encouraging trend. A clear indication of the encouraging trend from BTC investors is their renewed willingness to hold onto their coins rather than sell them off.

According to the report from Frank, a crypto expert and BTC market quant, this declining selling pressure is observed among long-term holders. Currently, selling pressure from the cohort has fallen to remarkably low levels, which reflects a notable shift in market behavior and sentiment.

BTC long-term holder reducing their selling activity | Source: Chart from Frank on X

Typically considered as the network’s most conviction-driven players, these investors continue to refrain from selling their BTC, causing the Long-Term Holder Sell-side Risk Ratio to fall to its lowest level in the past year. When selling pressure from the group decreases, it often implies confidence in future price increases or the conviction that current levels do not yet warrant selling.

Frank highlighted that the last time the Long-Term Holder Sell-side Risk Ratio reached this low, it was the $49,000 bottom following the Yen carry trade unwind. A few months later, the price of BTC witnessed a rally to a new all-time high. Should BTC follow the same trend as last time, a major price surge might be on the horizon. As a result, the expert is highly confident in BTC’s short-term and medium-term prospects.

Investors On Crypto Exchanges Are Losing Interest In Selling

Selling pressure has also reduced on major centralized exchanges, especially on Binance. On the platform, large investors or whale transactions involving BTC movement into the exchange are steadily declining. In other words, significantly less Bitcoin is being sent to trading platforms by large holders compared to earlier.

Unlike retail investors, whales are typically seen as a more cautious kind of BTC holders and are less susceptible to changes in the market. Data shows that whale inflows have been divided by and are currently valued at around $2.74 billion. At the end of November 2025, these inflows to Binance surged, reaching an average monthly total of nearly $8 billion when BTC’s price drops back below the $90,000 mark.

Currently, daily movements are far less frequent compared to the cluster seen at the end of November. This shift in dynamics indicates that whales have changed their behavior and are no longer selling aggressively, leaning more toward a waiting strategy. In the meantime, the holding action appears to be encouraged by the current consolidation period, which greatly lessens the selling pressure from whales, whose impact on the market can be substantial.

XRP trading at $89,152 on the 1D chart | Source: BTCUSDT on Tradingview.com

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Related Questions

QWhat is the main reason for the recent drop in Bitcoin's price below $90,000?

AThe price drop was due to a general market drawdown.

QWhich group of Bitcoin investors has shown a significant decrease in selling pressure according to the article?

ALong-term Bitcoin investors have shown a significant decrease in selling pressure.

QWhat does the decline in the Long-Term Holder Sell-side Risk Ratio to its lowest level in a year indicate?

AIt indicates investor confidence in future price increases or the belief that current price levels do not warrant selling.

QWhat historical event does the expert Frank compare the current low Long-Term Holder Sell-side Risk Ratio to, and what followed that event?

AHe compares it to the $49,000 bottom after the Yen carry trade unwind, which was followed by a rally to a new all-time high a few months later.

QWhat change in behavior have large investors (whales) on exchanges like Binance demonstrated recently?

AWhales have shifted from aggressive selling to a waiting strategy, with significantly less Bitcoin being sent to trading platforms.

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