- Long-term holders are trimming BTC positions, while short-term traders ride momentum.
- Despite consolidation near $102K, bullish sentiment holds.
After months of quiet belief, long-term holders are finally starting to trim their positions – just as short-term traders ride a wave of profits sparked by Bitcoin’s [BTC] surge.
With BTC now well over the $100K mark, market momentum is undeniable. LTH spending is rising, STH SOPR remains above 1, and the broader mood feels bullish. But growing profit-taking could soon test the market’s resilience.
Early signs of distribution
After a steady accumulation phase that saw LTH supply climb from 13.66 million BTC in mid-March to a peak of 14.29 million BTC, the trend has quietly reversed.
Source: Glassnode
May has recorded two consecutive declines in long-term holder (LTH) supply, alongside a rise in LTH spending to 0.43—a significant increase.
These subtle shifts often signal approaching local tops, as seasoned holders start taking profits before broader market movements.
With Bitcoin now trading above $100K, these inflection points warrant close monitoring.
STHs back in profit
Since the 8th of May, STHs have re-entered profit territory as Bitcoin surged past $99K. Their SOPR has consistently held above 1, signaling that recent sellers are locking in gains.
This is a key indicator of bullish momentum: when STHs are in profit, they’re less likely to panic sell and more inclined to ride the trend.
Source: CryptoQuant
As SOPR climbs toward 1.03, potential sell pressure builds – but so far, there’s little sign of aggressive distribution. Instead, sentiment suggests a market still gaining traction.
Price action cools, but momentum holds
Bitcoin traded at $102,706 at press time, down 0.83% on the day – a slight cooldown after its recent run above $103K. The RSI was at 66.47, bordering on overbought territory but not yet flashing warning signs of a reversal.
Meanwhile, the OBV flattened following a strong April uptrend – hinting at waning conviction among buyers, but not outright weakness.
Source: TradingView
While the daily candles show consolidation, the broader structure remains bullish.
As long as BTC holds above the $100K psychological support, the path of least resistance remains upward – though further gains may require fresh buying volume.
