While the price has rallied recently, Bitcoin’s unrealized profits were still far from the peak levels seen in previous bull markets. BTC price can move in either direction from here.

However, signs of selling from long-term holders were also apparent on the charts. In the past month alone, a total of 827,000 BTC has changed hands. So, what does this mean for Bitcoin’s price?

Bitcoin’s Unrealized Profits Stay Below Bull Market Peaks Amid Long-Term Selling

As Bitcoin rally continued, long-term holders have been displaying the action of relinquishing.

Recent observations suggested that BTC’s ratio of unrealized profit for long-term holders was still away from peaks last seen in prior market cycles. It could mean that the top in BTC is not reached yet.

Comparing BTC price with unrealized profits showed an obvious trend. During previous cycles of ups and downs, unrealized profits soared to previously unheard-of highs. This would happen just before the market reached its peak.

Yet the current cycle’s unrealised profits have been driven steadily higher, though these remain a long way from euphoric 2013, 2017, and 2021 levels.

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This showed it’s still far from the top of BTC’s current price rally, and the rally still has some potential.

Bitcoin’s long-haul holders kept holding, showing trust in Bitcoin’s future development. The fact that there were not big sell-offs near market tops also supports this.

BTC Price: Large Movements of 3-5 Year-Old Bitcoin Spotted

Further look into BTC showed that a large movement of 3-5-year-old Bitcoin was observed recently.

This shift in long-term holder behavior highlighted by these transactions: 2,118 BTC, 969 BTC, and 800 BTC.

These were such large transactions that often indicated strategic moves, either profit-taking or positioning for the broader market shift.

Looking at the movement of Bitcoin, which had been held for 3 or 5 years, appeared to suggest long-term holders were reacting to the current market conditions.

As expected, these transactions occurred around Bitcoin’s price fluctuations, indicating that holders were altering their positions.

🚨 Significant movement spotted!

Multiple large chunks of 3-5 year-old BTC has moved in the last 48 hours. 🕵️‍♂️ #Bitcoin #Crypto pic.twitter.com/Mn9TbUYd8i

— Maartunn (@JA_Maartun) December 7, 2024

The transfer of these seasoned Bitcoins in response to market changes is clearly reflected in the chart, suggesting that seasoned investors may be re-calibrating their strategy.

This activity aligned with the changing market sentiment, as long-term holders have the opportunity to be ahead of upcoming market changes.

The exact reasons for making these transfers are unclear, but the timing and scale of the transfers indicated that they are perhaps setting the stage for a larger opening up of the market.

In addition, these older Bitcoins moving about stimulated changes in the dynamics of the market, suggesting the importance of studying how long-term holders react.

Long-Term Bitcoin Holders Sell Over 827,000 BTC

Over the last 30 days, Bitcoin’s long-term holders sold a huge amount of their holdings. During this period, approximately 827,783 BTC were sold, reducing the position of long-term investors.

Long-term holders are usually seen as “strong hands” of the market, and the fact that this sell-off has happened in this way is an important indicator of the sentiment of the market.

This ties in with Bitcoin’s continued failure to make a breakout above key resistance levels.

When sales occur, especially when there is such a high number of long-term holders of the asset, it could mean long-term holders were taking their profits or losing faith in the current rise.

Like with previous cycles, we have witnessed similar sell-offs, which are indicators of a BTC price correction or consolidation period.

This signal was bearish, as a large-scale selloff by long-term holders is a sign of market reversal.

Short-term volatility of these sales could lead to difficulty in maintaining momentum for BTC price.

Historical data, however, shows that this sort of correction can set the market right and encourage other investors to reaccumulate.