Report Predicts Bitcoin HODLer Sales Likely to Occur Near This Price Point

An on-chain analytics company has highlighted in a recent report how increased selling pressure could emerge from long-term Bitcoin holders near the current price level.

Long-Term Bitcoin Holders’ Profit Could Reach 350% At $99,900

The latest weekly analysis discusses trends among long-term Bitcoin holders, defined as those who have retained their coins for over 155 days.

This group, known as “long-term holders” (LTHs), represents one of the two primary categories of Bitcoin investors, the other being “short-term holders” (STHs).

Data shows that the longer an investor retains their assets, the less inclined they are to sell, indicating that LTHs, with their extended holding periods, tend to be more steadfast than STHs.

A chart from the analytics firm illustrates the changes in total Bitcoin supply held by these long-term investors over the past couple of years.

The graph indicates a rise in the Bitcoin supply held by long-term holders over the past two months, suggesting that some short-term holders have transitioned into this group. In total, this metric has increased by 254,000 BTC during this timeframe.

While long-term holders are typically seen as resilient, they do engage in selling. The chart shows that these steadfast investors realized profits during significant rallies in the previous year.

Currently, Bitcoin is attempting to regain bullish momentum; however, the ongoing increase in LTH supply suggests that these investors are still not ready to sell.

The timing of when this group may decide to sell could be inferred from historical patterns.

The chart presents the average cost basis or Realized Price for long-term holders, along with corresponding price levels indicative of various profit or loss stages.

Currently, Bitcoin’s price significantly exceeds the Realized Price for this group, meaning they are holding substantial unrealized gains. Even so, these holders appear reluctant to liquidate their positions for now.

Regarding when sentiment might shift, the report outlines:

Historically, long-term holders tend to initiate selling pressure when they achieve a +350% unrealized profit margin.

According to their existing cost basis, long-term holders could attain this 350% profit level when Bitcoin reaches $99,900. Therefore, should Bitcoin’s upward trend sustain and reach this threshold, it could lead to increased selling activity from these holders.

Current BTC Price

As of now, Bitcoin is trading near $96,500, reflecting an increase of approximately 4% over the past week.