TLDR

• Bitcoin long-term holders distributed 295,000 BTC over 30 days at an average rate of 9,800 BTC daily
• Current selling levels remain moderate compared to May and December 2024 when over 800,000 BTC were sold
• ETF inflows and institutional buying continue to absorb selling pressure keeping prices stable
• Bitcoin trades around $121,975 with strong support holding at $120,000
• CryptoQuant’s Net Realized Profit/Loss metric at 4.4 million BTC indicates no peak signal yet

Bitcoin continues trading near $121,975 following a week of price volatility. The leading cryptocurrency recently tested its all-time high close to $126,000 before entering a consolidation phase.

Recent onchain data reveals long-term Bitcoin holders have been taking profits. Analyst Axel Adler reports these veteran investors sold 295,000 BTC over the past 30 days. The daily average comes to approximately 9,800 BTC.

While this selling activity is elevated, Adler points out it remains moderate historically. During May and December 2024, long-term holders distributed over 800,000 BTC in each period. These larger distribution events did not signal cycle tops but rather represented profit-taking during bullish runs.

The current selling pattern shows coins rotating from experienced holders to newer market participants. This transfer is typical during strong market conditions.

Market Structure Remains Healthy

Adler emphasizes the selling flow aligns with a bullish market structure. The critical factor is whether demand can absorb the distributed coins. Data indicates institutional investors and ETF-related purchases are offsetting the selling pressure effectively.

This demand balance keeps the market structurally sound. Prices remain supported above key levels despite ongoing profit realization by long-term holders.

CryptoQuant analyzed the Bitcoin Net Realized Profit/Loss indicator for additional market insight. This metric measures whether investors sell coins at net profits or losses.

The 1-year sum currently stands at 4.4 million BTC. While this demonstrates active profit-taking, the figure sits below January 2025’s peak of 5.1 million BTC. That January high was also lower than October 2021’s 7.7 million BTC peak from the previous cycle.

CryptoQuant concludes Bitcoin’s rally appears intact based on these readings. The firm identifies no signs of an imminent price peak.

Technical Levels Define Next Move

Bitcoin is consolidating after rejection near $126,000. The structure favors bulls while price maintains above $120,000.

The 50-period moving average provides immediate support and potential rebound zones. Below that, $117,500 represents a major support level. A break under this area could trigger retracements toward $114,000 where the 200-period moving average sits.

For continued upside, Bitcoin needs to reclaim $123,000-$124,000 with volume. A breakout above $125,000 would invalidate the current correction and potentially start a fresh leg higher toward price discovery.

Institutional Support Continues

The next few days will determine Bitcoin’s short-term direction. Many analysts watch whether BTC can break through $125,000 resistance.

Sustained buying momentum and absorbed distribution could set up another push higher. Conversely, failure to hold current levels may bring a temporary cooling period.

Institutional demand through ETF inflows provides ongoing market support. As long as buyers defend the current support zone, the bullish market structure persists.

Bitcoin holds within a healthy consolidation range following its strong rally. The $120,000 support level remains the key area to watch for the next directional move.