On-chain data shows Bitcoin long-term holders (LTHs) have seen their netflow rise recently, a sign that selling pressure from diamond hands is easing.
Bitcoin LTH Net Position Change Is Becoming Less NegativeStatistically, the longer an investor holds onto their coins, the less likely they become to sell them at any point. As such, the LTHs with their long holding times are considered to reflect the resolute side of the sector.
Though, despite the resilience of this group, its members still participate in selling during some parts of the cycle. One such phase is currently ongoing, as the chart shared by Beamish shows.
From the chart, it’s apparent that the selloff only deepened as BTC crashed to its low around $60,000 last month, implying that the volatility scared even some of the more resolute hands into parting with their tokens.
Since the negative peak in the indicator coinciding with the price lows, however, the Bitcoin LTH Net Position Change has been climbing back up. Today, its value is still red, suggesting continued selling pressure on the monthly timeframe, although the degree of it is notably lower. “After months of sustained net selling, LTH net position change is now easing, suggesting that selling pressure from seasoned holders is moderating as BTC stabilizes,” noted the analyst.
It now remains to be seen whether the Bitcoin LTH Net Position Change will continue to improve in the near future or if the diamond hands aren’t done selling yet.
Bitcoin has seen a minor retrace to $68,500 since the Monday high.
