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

Trending Cryptos

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.

Related Reads

Within Strategy's Framework, STRC's Dividend Yield Remains at 12% as Share Price Stays Below Par Value

Michael Saylor, Executive Chairman of Strategy (MSTR), confirmed that the dividend rate for its STRC perpetual preferred shares will remain at 12.00% through August 2026. The rate has increased from 9% at its July 2025 launch to the current high via a "ratchet" mechanism, which permanently raises the rate by 0.5% whenever the share price falls below $95. This mechanism is intended to push the price back toward its $100 par value and support Strategy's "at-the-market" (ATM) program for issuing new shares to fund Bitcoin purchases. However, the mechanism has not worked as intended. STRC shares closed at $89.46 on July 31, remaining about 10-11% below par value despite the record-high dividend. Competition from rival Strive's higher-yielding SATA securities has pressured demand. The persistent discount has forced Strategy to suspend new STRC issuances via its ATM program, limiting this funding channel for Bitcoin acquisitions. STRC's struggles reflect Bitcoin's own volatility, as the preferred shares historically move in tandem. Analysts have warned the ratchet structure carries long-term, one-way risk. A law firm is investigating Strategy's ability to maintain dividend payments if Bitcoin's price stays low. Retail investors own roughly 83% of outstanding STRC shares, a group seen as prone to panic selling during downturns. In response, Strategy has established financial reserves, including a liquidity cushion covering about 26 months of dividend/interest obligations, and a $2 billion share buyback program alongside a Bitcoin monetization framework, though the company emphasized it is not obligated to sell any Bitcoin.

cryptonews.ru19m ago

Within Strategy's Framework, STRC's Dividend Yield Remains at 12% as Share Price Stays Below Par Value

cryptonews.ru19m ago

Analyst: Bitcoin's Price Will Drop to $60k in August, Then Rebound to $70k

Financial analyst Andrey Poroshin has provided a new forecast for Bitcoin's price dynamics in August. Poroshin, an analyst at the Bitbanker exchange, expects the cryptocurrency market to experience a downturn this month, with prices retesting the $60,000 level due to a lack of supportive macroeconomic catalysts. He noted that the recent US Federal Reserve decision to hold interest rates did not significantly impact the market, while inflation remains above the 2% target. Poroshin stated that Bitcoin is ending July under pressure from moderate volatility and a lack of new macroeconomic stimuli, leading to continued market caution. According to his base scenario, Bitcoin will drop to a range of $60,000 to $62,000 before recovering to $70,000. He pointed out that even $70,000 remains below the cost of mining in the US, which has prompted some miners to shift towards AI data center operations. Poroshin cited the winding down of BitMEX's operations as a potential catalyst for a price rebound, suggesting the exit of weaker players often coincides with market reversals and reduced short-term selling pressure. He believes Bitcoin is currently less susceptible to geopolitical shocks, such as the Iran-US conflict, and does not expect significant market changes in August related to the pending CLARITY Act. Looking ahead, Poroshin forecasts that September will bring more active price fluctuations driven by potential Fed rate decisions and possible discussions or approval of the CLARITY Act.

cryptonews.ru19m ago

Analyst: Bitcoin's Price Will Drop to $60k in August, Then Rebound to $70k

cryptonews.ru19m ago

Trading

Spot

Hot Articles

What is $BITCOIN

DIGITAL GOLD ($BITCOIN): A Comprehensive Analysis Introduction to DIGITAL GOLD ($BITCOIN) DIGITAL GOLD ($BITCOIN) is a blockchain-based project operating on the Solana network, which aims to combine the characteristics of traditional precious metals with the innovation of decentralized technologies. While it shares a name with Bitcoin, often referred to as “digital gold” due to its perception as a store of value, DIGITAL GOLD is a separate token designed to create a unique ecosystem within the Web3 landscape. Its goal is to position itself as a viable alternative digital asset, although specifics regarding its applications and functionalities are still developing. What is DIGITAL GOLD ($BITCOIN)? DIGITAL GOLD ($BITCOIN) is a cryptocurrency token explicitly designed for use on the Solana blockchain. In contrast to Bitcoin, which provides a widely recognized value storage role, this token appears to focus on broader applications and characteristics. Notable aspects include: Blockchain Infrastructure: The token is built on the Solana blockchain, known for its capacity to handle high-speed and low-cost transactions. Supply Dynamics: DIGITAL GOLD has a maximum supply capped at 100 quadrillion tokens (100P $BITCOIN), although details regarding its circulating supply are currently undisclosed. Utility: While precise functionalities are not explicitly outlined, there are indications that the token could be utilized for various applications, potentially involving decentralized applications (dApps) or asset tokenization strategies. Who is the Creator of DIGITAL GOLD ($BITCOIN)? At present, the identity of the creators and development team behind DIGITAL GOLD ($BITCOIN) remains unknown. This situation is typical among many innovative projects within the blockchain space, particularly those aligning with decentralized finance and meme coin phenomena. While such anonymity may foster a community-driven culture, it intensifies concerns about governance and accountability. Who are the Investors of DIGITAL GOLD ($BITCOIN)? The available information indicates that DIGITAL GOLD ($BITCOIN) does not have any known institutional backers or prominent venture capital investments. The project seems to operate on a peer-to-peer model focused on community support and adoption rather than traditional funding routes. Its activity and liquidity are primarily situated on decentralized exchanges (DEXs), such as PumpSwap, rather than established centralized trading platforms, further highlighting its grassroots approach. How DIGITAL GOLD ($BITCOIN) Works The operational mechanics of DIGITAL GOLD ($BITCOIN) can be elaborated on based on its blockchain design and network attributes: Consensus Mechanism: By leveraging Solana’s unique proof-of-history (PoH) combined with a proof-of-stake (PoS) model, the project ensures efficient transaction validation contributing to the network's high performance. Tokenomics: While specific deflationary mechanisms have not been extensively detailed, the vast maximum token supply implies that it may cater to microtransactions or niche use cases that are still to be defined. Interoperability: There exists the potential for integration with Solana’s broader ecosystem, including various decentralized finance (DeFi) platforms. However, the details regarding specific integrations remain unspecified. Timeline of Key Events Here is a timeline that highlights significant milestones concerning DIGITAL GOLD ($BITCOIN): 2023: The initial deployment of the token occurs on the Solana blockchain, marked by its contract address. 2024: DIGITAL GOLD gains visibility as it becomes available for trading on decentralized exchanges like PumpSwap, allowing users to trade it against SOL. 2025: The project witnesses sporadic trading activity and potential interest in community-led engagements, although no noteworthy partnerships or technical advancements have been documented as of yet. Critical Analysis Strengths Scalability: The underlying Solana infrastructure supports high transaction volumes, which could enhance the utility of $BITCOIN in various transaction scenarios. Accessibility: The potential low trading price per token could attract retail investors, facilitating wider participation due to fractional ownership opportunities. Risks Lack of Transparency: The absence of publicly known backers, developers, or an audit process may yield skepticism regarding the project's sustainability and trustworthiness. Market Volatility: The trading activity is heavily reliant on speculative behavior, which can result in significant price volatility and uncertainty for investors. Conclusion DIGITAL GOLD ($BITCOIN) emerges as an intriguing yet ambiguous project within the rapidly evolving Solana ecosystem. While it attempts to leverage the “digital gold” narrative, its departure from Bitcoin's established role as a store of value underscores the need for a clearer differentiation of its intended utility and governance structure. Future acceptance and adoption will likely depend on addressing the current opacity and defining its operational and economic strategies more explicitly. Note: This report encompasses synthesised information available as of October 2023, and developments may have transpired beyond the research period.

1.4k Total ViewsPublished 2025.05.13Updated 2025.05.13

What is $BITCOIN

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of BTC (BTC) are presented below.

活动图片