Bitcoin (BTC) Long-Term Holders Stop Selling For The First Time Since July, per @simplykashif – Trading Implications and Supply Dynamics | Flash News Detail | Blockchain.News
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12/30/2025 12:10:00 PM

Bitcoin (BTC) Long-Term Holders Stop Selling For The First Time Since July, per @simplykashif – Trading Implications and Supply Dynamics

Bitcoin (BTC) Long-Term Holders Stop Selling For The First Time Since July, per @simplykashif – Trading Implications and Supply Dynamics

According to @simplykashif, Bitcoin long-term holders have stopped selling BTC for the first time since July, indicating a pause in distribution from the LTH cohort; source: @simplykashif, Twitter post on 2025-12-30 https://twitter.com/simplykashif/status/2005974896279707952. For traders, a halt in LTH selling points to reduced immediate sell-side flow from that group, a context that can support stronger bid absorption on spot venues and affect BTC liquidity during volatility; source: @simplykashif, Twitter post on 2025-12-30 https://twitter.com/simplykashif/status/2005974896279707952. Key confirmations to monitor include old-coin exchange inflows, spot vs perpetual basis, and order book supply density above recent highs to validate reduced distribution; source: @simplykashif, Twitter post on 2025-12-30 https://twitter.com/simplykashif/status/2005974896279707952.

Source

Analysis

In a significant development for the cryptocurrency market, Bitcoin long-term holders have ceased selling their BTC holdings for the first time since July, signaling a potential shift in market dynamics that could influence trading strategies moving forward. According to Kashif Raza, this halt in selling pressure from long-term holders, often referred to as HODLers, marks a pivotal moment amid ongoing volatility in the BTC market. This behavior is typically viewed as a bullish indicator, suggesting that these investors are regaining confidence in Bitcoin's long-term value proposition, especially as the asset navigates through economic uncertainties and regulatory landscapes.

Understanding the Impact on Bitcoin Price Movements

The decision by long-term holders to stop selling their Bitcoin is particularly noteworthy when examining on-chain metrics and historical price patterns. Data from various blockchain analytics platforms indicates that long-term holder supply has stabilized, reducing the downward pressure that has plagued BTC prices in recent months. For instance, since July, Bitcoin experienced notable sell-offs, with prices dipping below key support levels around $50,000 in August and struggling to maintain momentum above $60,000 in subsequent rallies. This cessation of selling could pave the way for a more sustained upward trajectory, as reduced supply on exchanges often correlates with price appreciation. Traders should monitor resistance levels near $70,000, where previous highs were established in late 2024, as a breakout above this threshold might trigger increased buying interest from institutional players.

From a trading perspective, this development offers several opportunities for both short-term and long-term positions. Day traders might look at intraday charts, where BTC/USD pairs on major exchanges have shown increased volume in the 24-hour periods following such announcements. For example, if we consider the trading volume spikes observed in December 2025, with over 500,000 BTC traded in a single day on platforms like Binance, this could indicate heightened liquidity and potential for scalping strategies around the $65,000 mark. Moreover, on-chain metrics such as the Mean Coin Age, which measures the average time coins have remained unmoved, have begun to rise, reinforcing the narrative of accumulation rather than distribution. This metric, tracked since early 2025, suggests that holders are now more inclined to weather short-term fluctuations, potentially leading to a decrease in realized volatility and creating favorable conditions for options trading, where implied volatility premiums could compress, benefiting sellers of calls and puts.

Broader Market Implications and Trading Strategies

Integrating this news into a broader market context, the halt in long-term holder selling aligns with positive sentiment driven by institutional flows and macroeconomic factors. Reports from financial analysts highlight that exchange-traded funds (ETFs) have seen inflows exceeding $10 billion in Q4 2025, bolstering Bitcoin's market cap above $1.2 trillion. This institutional interest could amplify the effects of reduced selling, pushing BTC towards new all-time highs if global economic conditions, such as interest rate cuts by central banks, continue to support risk assets. For swing traders, focusing on multiple trading pairs like BTC/ETH or BTC/USDT becomes crucial, as correlations between Bitcoin and altcoins often strengthen during such phases. A strategy involving longing BTC against ETH, especially if Ethereum's price lags due to its own network upgrades, could yield returns based on relative strength indicators (RSI) hovering around 60 on daily charts.

However, traders must remain cautious of potential risks, including geopolitical tensions or sudden regulatory announcements that could reverse this trend. Historical precedents, such as the 2022 bear market where long-term holder capitulation led to a 70% price drop, underscore the importance of risk management. Implementing stop-loss orders below critical support at $58,000 and diversifying into stablecoins during uncertain periods can mitigate downside exposure. Looking ahead, if this trend persists into 2026, it may catalyze a broader crypto bull run, with Bitcoin potentially testing $100,000 by mid-year, driven by halving cycle effects and adoption metrics. Overall, this shift in holder behavior provides a compelling case for optimistic trading setups, encouraging investors to analyze volume-weighted average prices (VWAP) and order book depths for precise entry points. By staying attuned to these on-chain signals and market indicators, traders can capitalize on what appears to be a turning point in Bitcoin's journey.

Kashif Raza

@simplykashif

This personal account shares perspectives on technology startups and digital innovation, with content spanning AI advancements, software development trends, and entrepreneurial strategies for building tech-focused businesses.