Bitcoin Price Drops, Yet Long-Term Holders Aren’t Selling—Here’s Why

9 hours ago

Bitcoin’s price has slipped from recent highs, br

Bitcoin’s price has slipped from recent highs, breaking below key short-term levels and triggering renewed fears of a deeper correction. However, beneath the surface, on-chain data tells a very different story.

Source: X

The combined charts point towards three main outcomes. Firstly, no mass distribution from long-term holders. Secondly, distribution is occurring at higher levels, followed by a controlled reset and thirdly, short-term traders are driving volatility, not smart money exits. This is typical of mid-cycle corrections, where leverage and late longs are flushed while long-term conviction remains intact.

What’s Next for the BTC Price Rally?

Bitcoin price is facing notable upward pressure but continues to trade within a demand zone. If the price reclaims the range between $98,000 and $102,000, it could signal absorption and open the door for continuation. An invalidation could drag the price close to $82,000, which could weaken the broader bullish thesis. Besides, holding within the current demand zone between $88,000 and $92,000 could keep the structure constructive.

Despite the sharp pullback, on-chain data does not support a cycle-top narrative. Long-term holders remain calm, while price action reflects a market resetting excess, not unwinding conviction. For now, the BTC price appears to be digesting gains, not ending the trend. Direction will be decided not by fear, but by how price reacts at key levels in the days ahead.

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