Bitcoin LTH Selling Pressure Overstated by Data Distortion, Suggesting Accumulation Potential
The post Bitcoin LTH Selling Pressure Overstated by Data Distortion, Suggesting Accumulation Potential appeared on BitcoinEthereumNews.com.
Bitcoin long-term holders are not dumping their assets en masse; recent data spikes were distorted by Coinbase’s internal transfers of nearly 800,000 BTC in late November. Excluding these transactions reveals steady, normal selling consistent with past cycles. This suggests the market remains resilient, with potential for accumulation ahead. Technical distortion from Coinbase reshuffle created false selling pressure signals in on-chain metrics. Excluding exchange-related moves shows LTH behavior aligning with historical patterns during bull markets. The NVT Golden Cross indicator is recovering from undervalued levels, signaling a shift toward balanced valuations and possible price recovery, as seen in previous cycles with 20-30% rebounds. Discover why Bitcoin long-term holders selling fears are overstated due to Coinbase distortions. Explore on-chain insights and indicators for BTC’s resilient outlook. Stay informed on crypto trends today. Are Bitcoin Long-Term Holders Really Selling Off Their Holdings? Bitcoin long-term holders are not engaging in widespread selling, contrary to initial on-chain data appearances. The perceived spike in selling pressure stemmed from Coinbase’s large-scale internal reshuffle of approximately 800,000 BTC in late November, when prices hovered around $85,000. This activity destroyed old UTXOs and created new ones, artificially inflating metrics for long-term holder outflows. Once these exchange-specific transactions are filtered out, the data indicates LTHs are offloading at a measured pace, mirroring behaviors from prior market cycles and underscoring Bitcoin’s underlying stability. How Does the Coinbase Transaction Distortion Affect On-Chain Analysis? The Coinbase event significantly skewed on-chain analytics, leading to misconceptions about Bitcoin long-term holders selling. Analysts, including those from CryptoQuant, have emphasized that such custodial movements—common for institutional platforms—do not represent actual market sales but rather administrative adjustments. For instance, the reshuffle involved consolidating holdings without external transfers to buyers, yet it triggered alerts in tools tracking UTXO age bands. Historical data from similar incidents, like past exchange migrations,…
Filed under: News - @ December 20, 2025 5:23 pm