On-chain data from analytics firm Glassnode reveals a significant slowdown in selling pressure from Bitcoin's long-term holders (LTHs), a cohort defined as wallets holding BTC for more than 155 days. After weeks of elevated activity, the monthly net outflows from these so-called 'diamond hands' have retreated from recent extreme levels, indicating a potential shift in market sentiment.
This behavioral change is notable as LTHs are considered the market's most resolute investors, and their actions are closely watched for directional cues. The recent distribution phase, which began in late 2025, occurred alongside bearish price momentum, unlike previous selloffs that coincided with bull rallies in 2024 and mid-2025. Glassnode's analysis suggests the market is progressively absorbing this long-held supply, with a large portion of overhead supply potentially now worked through.
Concurrently, the Realized Profit metric for LTHs has dropped to low levels from earlier elevated states. Glassnode notes that such conditions often emerge during periods of heightened uncertainty, typical of mid-bull market pauses or the early stages of deeper bear markets. This decline in selling pressure could point to renewed long-term confidence in Bitcoin's value, especially as the asset consolidates following months of strong price action and ETF-driven momentum.
Other on-chain metrics, including increasing inactive supply and wallet dormancy, support the view that long-term holders are choosing to hold rather than move coins to exchanges. Historically, similar reductions in LTH selling have preceded price recoveries or accumulation phases. At the time of reporting, Bitcoin was trading around $91,800, down almost 3% over the past week.
