CryptoQuant: BTC Net Flow Shrinks as Long-Term Holders Sell Off Unabsorbed

On November 7th, Julio Moreno, the Head of Research at CryptoQuant, posted an analysis of this Bitcoin Long-Term Holder (LTH) sell-off and how it differs. He stated that it is a regular occurrence for Bitcoin long-term holders to sell during a bull market. When the price reaches a new high, long-term holders usually take profits. The key is whether Bitcoin's demand is growing and if it can withstand the selling pressure at a higher price. For instance, from January to March and November to December 2024, as demand increased (in the green zone), the selling of long-term holders increased in sync, driving the price to new all-time highs. However, since October of this year, the selling of long-term holders has increased, but new demand has shrunk (in the red zone), and it is unable to absorb the supply at a higher price.