Long-Term Bitcoin Holders Pull Back as Accumulation Continues

The #Gate2025AnnualReport long-term Bitcoin holders have suddenly reduced their selling activity, marking a notable shift in on-chain behavior after months of continuous distribution.
On-chain data tracking the 30-day net position change of long-term holders shows that the supply movement has reversed back into the accumulation zone.
This transition occurs after many analysts described it as the largest long-term sell-off phase since 2019. That phase now appears to have ended, with the latest figures indicating sellers are exiting the market rather than continuing to supply into weak prices.
Change in Supply Pressure
The chart highlights a clear shift: red distribution bars that dominated in recent months have given way to new accumulation signals. Historically, such a transition does not immediately trigger strong bullish rallies.
Instead, it often signals that downward pressure is easing and price volatility is beginning to contract as market bottoms gradually form.
Rather than aggressive buying pushing prices higher, these phases are typically characterized by a lack of large sellers, allowing the market to stabilize naturally.
Broader Market Context
The shift towards supply coincides with several reinforcing trends:
ETF funds continue to absorb available Bitcoin supply
Corporate treasury buyers are increasing exposure during dips
Retail participation remains limited
Market sentiment and fear indices are still high
This combination often relates to transitional phases rather than market tops. Historically, major turning points occur when persistent sellers disappear, not when enthusiasm peaks.
Why It Matters
Long-term holders are considered the most confident participants in the Bitcoin market. When this group stops distributing coins after a prolonged selling phase, it often marks the end of a correction cycle, even if short-term price action remains weak.
As mentioned, the reduction in selling pressure from long-term holders removes a significant supply overhang that has weighed on the market for months. While this does not guarantee an immediate rally, it significantly improves conditions for building a foundation and developing future trends.
Currently, data shows that the largest Bitcoin sellers have withdrawn, and historically, this is when the market begins to quietly shift.