#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.
- 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
- 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
- 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.
- 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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