Long-term Bitcoin holders are starting to sell, signaling a shift in market sentiment.
New wallet growth has slowed sharply, hinting at rising investor caution.

The largest digital asset, Bitcoin, is again under the spotlight as it trades just below its recent all-time high. Notably, many market participants are raising fresh questions about what comes next for the world’s leading cryptocurrency.

Bitcoin Long-term Holders Begin to Sell

Bitcoin recently touched a new all-time high of $111,980 but has pulled back slightly, now trading around $106,708. Interestingly, as the market hovers near this milestone, investor behavior is beginning to shift.

A key change has come from long-term holders, often known for their steady HODLing. New data shows that these holders are beginning to sell. This is measured by a metric called Bitcoin Liveliness, which has now climbed to its highest point in nearly four years.

Bitcoin Liveness Chart | Source: Glassnode

This shift is significant as long-term holders usually provide stability in the market. When they begin to move their assets, it signals a change in sentiment. Selling by these holders often marks a turning point. Their actions can spark increased volatility, especially when combined with a cautious mood already spreading through the market.

Adding to the uncertainty is the behavior of new Bitcoin addresses. Earlier this month, growth in new addresses showed promise, suggesting fresh interest from new investors. Reacting to this positive price movement, we covered that American businessman Robert Kiyosaki recently encouraged investors to invest in physical gold, silver, and Bitcoin (BTC).

However, more recently, this price movement and bullishness have reversed. Market charts now show a sharp drop in new wallet creations. That decline hints that fewer new participants are entering the space, and some current ones might be exiting.

Based on market mood, this slowdown in Bitcoin address activity and long-term holders choosing to take profits paints a cautious picture. It suggests a pause in momentum, at least for now. This does not mean a collapse, but it raises questions about how quickly Bitcoin can climb back to or beyond its recent peak.

Also, in line with the current BTC market outlook, CNF recently reported that JPMorgan’s CEO Jamie Dimon announced that his bank would allow its customers to purchase Bitcoin during the bank’s Investor Day.

Price Close to ATH but Faces Key Resistance Levels

Bitcoin remains less than 5% away from its all-time high, but the road ahead is not guaranteed. As we noted earlier in our news piece, crypto analyst Ali Martinez shared that there is a potential liquidation of $23.47 million if BTC retests the $106,268 level.  

The next few days will be crucial based on the general perception. Further declines could follow if the price falls below the key support level of $106,265. Analysts point to possible drops to $105,000 or even $102,734 if selling continues. Currently, CoinMarketCap data shows that Bitcoin is trading at $109,858.38, up by 2.39%.

However, if Bitcoin holds its current levels and buyers return, it could recover quickly. Moving above the $110,000 resistance mark would set the stage for another push past $111,980. This makes the coming days important for both short-term traders and long-term watchers.

Still, an earlier report by CNF highlighted that Raoul Pal, founder of Real Vision and a respected financial analyst, shared a confident forecast for Bitcoin (BTC). Pal stated that the leading cryptocurrency could climb above $140,000 by July 2025.

The behavior of long-term BTC holders remains a key clue to Bitcoin’s next move. 

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Filed under: Bitcoin - @ May 26, 2025 8:10 pm