TLDR:
- Long-term holders end the most intense Bitcoin distribution period since 2019, shifting to accumulation mode.
- ETF inflows and corporate treasury purchases continue absorbing supply amid minimal retail participation.
- Key liquidity zones identified at $91k-$92k resistance and $88.5k-$89k support with CME gap at $88.2k.
- Reduced veteran selling pressure signals potential floor formation rather than distribution top conditions.
Bitcoin selling pressure has diminished significantly as long-term holders shift back to accumulation mode. The transition marks the end of the most intense distribution period from veteran holders since 2019.
Multiple market factors now converge to reduce downside risks for the asset. Institutional demand through ETFs continues while corporate treasuries add to positions.
Retail investors remain largely absent, and fear persists across crypto markets. The combination suggests a potential floor formation rather than a market top.
Distribution Phase Concludes After Extended Period
The most substantial Bitcoin selling pressure in nearly six years has come to an end. Long-term holders have stopped their heavy distribution and returned to net accumulation.
This behavioral shift removes a critical supply source that has weighed on price action for months.
CryptosRus noted the importance of this development in recent market analysis. When veteran holders cease feeding supply into the market, downside pressure naturally fades.
The immediate impact often shows up as compressed volatility rather than sharp price increases. Markets need time to absorb the change before establishing a clear direction.
The easing of selling pressure creates conditions for stronger support formation. Long-term holders typically possess a clearer understanding of market cycles and fundamental value.
Their decision to accumulate rather than distribute signals confidence in current price levels. This shift does not guarantee upward movement but removes significant overhead resistance. The market can now stabilize without constant selling from experienced participants.
Technical Structure Supports Reduced Pressure Narrative
Analyst Ted identified key liquidity zones that align with the reduced selling pressure thesis. Two distinct clusters frame the current trading environment.
An upside cluster exists between $91,000 and $92,000. The downside shows concentration between $88,500 and $89,000.
An unfilled CME gap sits at the $88,200 level. These technical gaps typically get filled as markets seek efficiency.
Ted expects Bitcoin to trade at this level before initiating the next upward move. The gap represents unfinished business that price action tends to resolve.
Supporting factors reinforce the easing pressure environment. ETFs maintain consistent inflows and absorb available supply from the market. Treasury firms continue accumulating during price weakness without hesitation.
Retail participation stays minimal while fear dominates sentiment readings. These conditions historically appear during accumulation phases rather than distribution tops.
The technical setup now depends on whether the downside gap fills before buyers push toward upper resistance. Markets remain in transition as selling pressure subsides and accumulation takes hold.
The post Bitcoin Long-Term Holders Resume Accumulation After Largest Distribution Since 2019 appeared first on Blockonomi.
Source: https://blockonomi.com/bitcoin-long-term-holders-resume-accumulation-after-largest-distribution-since-2019/
