Bitcoin Price Tops $109K! Are Holders Selling Out Before Crash?

• Bitcoin’s accumulation trend score is near zero, which signals reduced large-entity accumulation amid price growth.
• Long-term holders retain reserves but resume selling during Bitcoin’s rally, echoing 2021 bull market patterns.
• SOPR analysis warns short-term selling may peak, but cycle-top indicators remain absent.

Bitcoin (BTC) has reached beyond $109,000. That marked a new record before the Bitcoin price receded to stay above the $100,000 mark.

According to the market data, investors behaved differently. Long-term holders showed one pattern, and short-term traders demonstrated another.

Long-Term Holders Show Selling Behavior Amid Price Surge

CryptoQuant data exhibited that BTC long-term holders who held the token for six months abstained from selling. They did it throughout the March 2024 correction until the BTC price rallied again.

Long-term Bitcoin holders began selling their assets again as the cryptocurrency reached new record prices. Established patterns from 2021’s bull market demonstrate that long-term holders sought profit realization at price peaks.

Analysis of the UTXO data revealed long-time investors maintain significant Bitcoin holdings despite active selling. That indicated ongoing growth in the market cycle.

Investor behavior showed signs of profit realization. However, it has not yet indicated a total market withdrawal.

Short-Term Holders Adopt Frequent Selling Patterns

Short-term holders demonstrated consistent selling activity through all recent Bitcoin price changes.

Per CryptoQuant’s 30-day moving average, SOPR assessment data showed an uptick in their selling activities. This happened when the ratio crossed 1.02, demonstrating profitable exits.

Bull markets in the final stage typically show SOPR values above 1.06. However, analysts observe no such levels currently.

Researchers warn that a sharp increase in SOPR represented a cycle peak. Yet, the market remained below this threshold, allowing potential market changes.

Concerns Over Distribution by Larger Entities

Additionally, crypto analyst Ali pointed out that the present status of the Bitcoin accumulation trend score is near zero. This is because recent data showed that large investors do little or nothing to accumulate or disseminate new coins.

Bitcoin price continued to gain value from $50,000 to above $103,000 between mid-August of 2024 to January 22, 2025. Moreover, the current data indicated the same trend.

The market saw accumulative buying behavior in October 2024, which aligned with rising the BTC price. Selling activity among prominent market operators expanded following widespread distribution demonstrated by low scores in early January 2025.

Questions Over Chinese Bitcoin Holdings

Meanwhile, CryptoQuant’s Ki Young Ju questioned China’s Bitcoin holdings. He asked what would happen to the 194,000 Bitcoin Chinese officials took following the 2019 PlusToken scam.

“China sold 194K Bitcoin already, imo,” Ju stated. He added, “The seized BTC was sent to Chinese exchanges like Huobi and mixed using multiple wallets.”

Ju disputes the Chinese government’s claims about asset transfers to the national treasury. He does this by showing proof of likely extensive property sales.

According to him, mixer and exchange platform usage demonstrates asset distribution rather than asset holding. Such large-scale sales have triggered doubts within the market because their future effects on the Bitcoin price are unknown.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.