Bitcoin is currently experiencing significant selling pressure, primarily driven by long-term holders liquidating their positions. Daily realized gains have reached $1.7 billion as older coins re-enter circulation. Analyst James Check indicated on Sunday that delays in market recovery are due to traditional selling activities rather than manipulation or suppression.
The substantial sell-side pressure originating from existing Bitcoin holders is a key factor contributing to current resistance and remains largely underestimated. Data from charts shows an increasing average age of spent coins throughout the current cycle, which confirms that long-term holders are the principal sellers.
Daily realized profits have surged to $1.7 billion, while realized losses have climbed to $430 million per day. This marks the third-highest loss level observed this cycle. Concurrently, the revived supply from older Bitcoin coins has reached its second-highest level, amounting to $2.9 billion daily.
Shifting Holder Dynamics
Crypto investor Will Clemente observed that the relative weakness Bitcoin has shown over the past year largely reflects a transfer of supply from original holders to participants in traditional finance. He noted that this dynamic is evident in on-chain data and is expected to become less significant in the coming years, despite the current focus on Bitcoin's performance.
Galaxy Digital CEO Mike Novogratz echoed this sentiment in a recent interview. He explained that many long-term Bitcoin holders who have endured extended market cycles have now decided to convert their holdings into tangible assets. Novogratz cited personal examples of friends purchasing yachts and stakes in sports teams.
The market is currently absorbing this turnover as participants trim their positions after realizing substantial gains. Novogratz confirmed that his firm has exclusively observed supply entering the market from veteran holders and miners.
Key Support Levels and Future Outlook
Bitcoin has maintained support, with its weekly closing candle recorded at $108,700, according to TradingView data. Analyst Rekt Capital pointed out on Sunday that continued stability at this level could pave the way for a rally towards $120,000 over time, stressing the critical importance of holding this support.
At the time of analysis, the asset had reclaimed the $110,000 level but faces immediate resistance just above this threshold. The next significant price movement will likely depend on whether long-term holders complete their profit-taking cycle, thereby allowing fresh demand to drive market momentum.