Bitcoin (BTC) has remained range-bound between $100,000 and $110,000 since May, offering few clues about its next directional move. While this sideways price action may be frustrating traders, on-chain indicators suggest there may be more happening beneath the surface. Long-Term Holders Are Selling Bitcoin According to a recent CryptoQuant Quicktake post by contributor Yonsei_dent, long-term holders (LTHs) – those who have held BTC for more than six months – have been consistently selling their coins. Two key indicators, the Spent Output Age Bands (SOAB) and Binary Coin Days Destroyed (CDD), support this observation. For the uninitiated, SOAB is an on-chain metric that tracks the age of Bitcoin being spent, categorizing coins based on how long they were held before being moved. It helps identify whether short-term or long-term holders are currently active, revealing shifts in investor behavior and broader market trends. Similarly, Binary CDD is a simplified on-chain metric that shows whether LTHs spent any coins on a given day – represented as a binary “yes” (1) or “no” (0). Unlike traditional CDD, it focuses solely on the presence or absence of LTH activity, making it easier to spot trend changes in long-term holder behavior. What’s notable, according to Yonsei_dent, is that despite this steady selling by LTHs, BTC’s price has not broken down. The fact that the market is absorbing this selling pressure suggests that new demand – possibly from fresh buyers – is stepping in. The analyst added: For a bullish trend to sustain, this kind of healthy rotation (from strong hands to new buyers) is essential. In that context, LTH spending isn’t a warning sign – it’s actually a constructive signal. In addition, there’s rising activity from holders who acquired BTC one to three years ago. This likely reflects profit-taking by those who bought during previous cycle lows. That said, such selling does not necessarily indicate weakness. On the contrary, it suggests a transition in market leadership from older to newer holders – a dynamic typically seen in the mid-to-late stages of a bull market. In conclusion, Yonsei_dent believes that the crypto market is likely in a phase of “quiet redistribution,” where LTH selling is being matched by sufficient buy-side demand – potentially setting the stage for the next strong move. Not All Analysts Are Optimistic Despite the constructive signals from SOAB and Binary CDD, not all analysts are convinced of a near-term breakout. For example, the Bitcoin MVRV ratio is showing signs of bull market fatigue. Likewise, even after the recent price rebound, Bitcoin network activity remains significantly muted – raising concerns about a broader lack of user engagement. At press time, BTC trades at $107,781, down 0.1% over the past 24 hours.
