Bitcoin’s Market Sentiment Takes A Turn As Long-Term Holders End Distribution Phase

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In the ever-turbulent realm of cryptocurrency, one finds the market in a state of heightened volatility, akin to a tempestuous sea, as the price of Bitcoin has plummeted below the esteemed threshold of $85,000. This decline follows a rather fleeting moment of optimism, which, like a summer’s day, was all too brief. The sentiment among investors has taken a most dramatic turn, which may well dictate the future course of this illustrious asset.

Long-Term BTC Holders Halt Massive Distribution Phase

As our dear Bitcoin grapples with its inability to reclaim its former glory, a most intriguing trend has emerged among its long-term custodians. The astute Axel Adler Jr., a researcher of no small repute, has discerned a shift in the collective mood of these investors through his diligent examination of the data.

It appears that these long-term holders have concluded their distribution phase, perhaps preparing for a resurgence of bullish enthusiasm. This cessation of selling pressure suggests a delightful limitation on the supply of Bitcoin in the market, much like a well-guarded secret.

According to the sagacious Adler, the distribution by these long-term holders has reached unprecedented levels in recent years. After scrutinizing key metrics, he has noted a shift from a flurry of selling to a more subdued state of accumulation.

The reduction in supply is often heralded as a sign of a new market cycle, a stabilization of sorts, which may portend a most favorable turn of events. Should the demand for Bitcoin surge, we might soon witness a delightful supply squeeze, much to the chagrin of those who have been less than optimistic.

In a recent missive on X (formerly known as Twitter), the esteemed expert reported that long-term holders have distributed a staggering 1.715 million BTC from the lofty heights of $60,000. After examining the 30-day Net Position Change of these holders, Adler has identified a most significant distribution by the long-term investors.

With the distribution phase drawing to a close, the metrics have nearly returned to a state of neutrality, suggesting that the large-scale selling pressure has ceased. Should this trend persist, the prospect of Bitcoin experiencing a delightful rebound becomes increasingly likely as long-term holders re-enter the accumulation phase.

A Stop In Bitcoin’s Selling Pressure On Crypto Exchanges

Despite the persistent bearish performance of Bitcoin’s price, a curious optimism has begun to blossom among investors and traders alike, leading to a reduction in selling pressure. Axel Adler has revealed that the active selling by long-term holders has reached its conclusion on crypto exchanges, much to the relief of many.

Following this cessation of selling activity, the monthly Moving Average inflow has declined from a rather alarming 3.8% to a more palatable 1.4%. This diminishment of downward pressure on Bitcoin is indeed a most encouraging sign for its price, akin to a gentle breeze on a sweltering day.

At the time of this writing, Bitcoin was trading at $81,995, having suffered a more than 5% decline in the last 24 hours. Yet, investors seem to be seizing the opportunity presented by this sharp decline, as trading volume has surged by over 24% in the past day, much like a sudden influx of guests at a well-attended ball.

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2025-03-10 08:45