Long-Term Bitcoin Holders Resist Selling Amid Recent Highs — What This Signals

Samuel Edyme

1 year ago

3 mins read

Long-Term Bitcoin Holders Resist Selling

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As Bitcoin flirts with its previous all-time highs, the celebrated ‘diamond hands’—a term in crypto parlance denoting long-term holders (LTHs)—are demonstrating notable restraint, selling their holdings at a rate notably lower than in previous bull markets.

According to a recent analysis by on-chain analytics firm Glassnode, despite the near $70,000 valuation, the selling pressure from these seasoned investors remains subdued.

Bitcoin Diamond Hands Loyalty Amid Highs

The phenomenon of ‘diamond hands’ holding firm as Bitcoin reaches significant price levels is not new but remains a cornerstone of market stability.

These LTHs, defined by Glassnode as wallets holding Bitcoin for over 155 days, display investment maturity that underpins the market’s resilience.

Even with Bitcoin’s price hovering around $67,722—down 3.5% over the past week but still up slightly by 0.6% in the last 24 hours—these investors are not rushing to cash out.

Additionally, Glassnode’s report highlights that long-term holders are yet to reach the point of selling that typically precedes a market downturn.

The market value to realized value (MVRV) ratio, a reliable metric to gauge the profitability of long-held Bitcoins, indicates that many LTHs are sitting on substantial unrealized profits. Historically, LTHs begin to sell once this ratio hits particular highs, which has not yet occurred despite the recent peak.

Bitcoin long term holder metric. — Bitcoin long-term holder metric. | Source: Glassnode

Interestingly, during the surge to $73,800 in March—the latest all-time high—long-term holders were not the primary sellers. Glassnode pointed out that only a modest 519k BTC was sold by LTHs during this period, considerably less than in previous bull runs, where monthly sales approached nearly one million BTC.

Of this, 519k BTC sold, “20% originated from Grayscale ETF holders,” as reported by Glassnode. This restrained selling behavior is significant, suggesting a strategic approach to holding and a belief in further price appreciation.

Bitcoin long term holder and Grayscale ETF position change. | Source: Glassnode

The Future Holds Optimism

Moving forward, Glassnode anticipates that LTHs will continue to play a pivotal role in the market dynamics. Their recent behavior indicates a shift towards re-accumulation following significant distribution around the $73k all-time high.

Bitcoin (BTC) price chart on TradingView — BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Such patterns underscore a sophisticated strategy: Bitcoin’s most steadfast supporters may be gearing up for another run, anticipating higher peaks beyond current levels.

Amid these developments, crypto analyst Cryptorphic has forecasted Bitcoin reaching as high as $156,000 by May 2025, adding to the sentiment around Bitcoin, which remains interestingly bullish.

#Bitcoin could hit $156,000 by May 27 2025!

These green boxes represent the price action after #BTC halvings. We’ve never seen a red year after a halving.
Bitcoin halvings are significant events, here are the percentages of Bitcoin’s price increase one year after each halving… pic.twitter.com/QEmNN8OuP2

— Cryptorphic (@Cryptorphic1) May 27, 2024

Featured image created with DALL·E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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