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#BTC Glassnode: Long-Term Holder Distribution Is Slowing — Supply Pressure Is Being Absorbed

According to the latest on-chain data from Glassnode, Bitcoin distribution by Long-Term Holders (LTHs) is clearly decelerating. Notably, net BTC outflows from long-term holders have rolled over after reaching extreme levels in the prior phase.


  1. What’s happening with Long-Term Holders?

Long-Term Holders are typically:

Holding BTC for more than 155 days

More likely to distribute at higher price levels

A key source of overhead supply that can weigh on the market

The decline in net outflows suggests:

LTHs are no longer selling aggressively

Distribution pressure from seasoned holders is gradually being exhausted


  1. The market is absorbing long-held supply

Glassnode indicates that the market is progressively absorbing long-held BTC supply:

Coins sold by LTHs are being efficiently absorbed by new demand

Price is no longer reacting as negatively as it did during earlier distribution phases

This typically occurs during:

The late stage of a medium-term correction

Or a consolidation phase ahead of a new growth cycle


  1. Overhead supply may be largely worked through

Once the majority of willing LTH sellers have exited:

Overhead supply declines materially

The market becomes more sensitive to fresh inflows

Even a modest increase in demand can drive strong upside momentum

Historically:

Periods when LTH distribution stalls often precede sustained Bitcoin uptrends.

  1. Implications for investors

Short term: Volatility may persist, but structural sell pressure is fading

Medium to long term: On-chain conditions increasingly favor accumulation

Strategy: Monitor complementary indicators such as:

LTH Supply in Profit

Realized Cap

SOPR (LTH & STH)


Conclusion

The slowdown in Long-Term Holder distribution is a structurally constructive signal. As the market absorbs the bulk of long-held supply, Bitcoin enters a phase where new demand may become the primary driver of the next trend.

📊 On-chain data doesn’t call exact tops or bottoms—but it does reveal when distribution risk is diminishing.

#BTC #Glassnode #OnChainAnalysis #BitcoinCycle #LTH #CryptoMarket


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