Bitcoin price recovery likely undeterred by $1.3 billion BTC sale of long-term holders


  • Bitcoin long-term holder addresses that held the asset for more than a year sold nearly 50,000 Bitcoins on May 15. 
  • The sale of long-term Bitcoin holdings represent the BTC supply that re-enters circulation, also known as revived supply.
  • BTC price recovered in June and November 2022, when nearly the same dollar value in Bitcoin was sold by long-term holders. 

Nearly 50,000 Bitcoin held by long-term wallet addresses have entered the market again. While BTC sale by long-term holders is typically considered bearish, past experience shows that revived supply entering the market has led to a recovery for BTC in the long-term. 

Also read: Lido Finance faces $782M Ethereum withdrawals from bankrupt Celsius, ETH holders brace for selling pressure

Bitcoin long-term holders shed 50,000 BTC holdings 

Bitcoin wallet addresses holding the asset for more than a year shed their BTC holdings earlier this week. While a decline in BTC supply held by long-term holders is typically considered bearish for an asset, in the case of Bitcoin, “revived” supply usually precedes a price recovery.  

When Bitcoin held by long-term holders (users that held BTC for greater than a year) enters the market, it is defined as “revived supply.” On May 15, nearly $1.3 billion worth of Bitcoin reentered the market, and similar levels of revived supply were seen twice over 2022. 

In June and November 2022, 100,000 BTC and 205,000 BTC entered the market, representing more than $1.3 billion in dollar value at the time. These spikes in revived supply were followed by a recovery in the asset’s price. 

Bitcoin revived supply

Bitcoin revived supply in June and November 2022 

While the volume of BTC revived in May is relatively lower compared to previous spikes, the dollar value is comparable. The chart above shows the steady recovery in Bitcoin price, in the two to three months after the revived supply entered the market. 

If history repeats, Bitcoin price could recover from its decline below the April peak of $30,899. 

The supply on exchanges, a key metric showing the volume of Bitcoin that hits exchange wallets, reflects the recent increase in revived supply. 

Bitcoin supply on exchanges

Bitcoin supply on exchanges 

Bitcoin supply on exchanges was 1.13 million as of May 15, when long-term holders sold BTC, according to data from Santiment. Since then, it has fallen to 1.11 million as demand on exchanges absorbed the sale of BTC by long-term holders. In this context, the asset’s price could recover from its recent pullback. 

Bitcoin price analysis

Bitcoin price is in an upward trend that started at the beginning of 2023. The asset hit an April 2023 peak of $31,028 (on Bitstamp) and witnessed a correction thereafter. In its path to recovery, BTC price faces resistance at $28,459 and $29,480, levels that acted as resistance between March and mid-May. 

BTC,  which trades around $26,800 at the time of writing, is  below its 10-day and 50-day Exponential Moving Averages (EMAs) at $27,278 and $27,677, respectively. These price levels could act as immediate resistance to Bitcoin price. 

BTC/USD one-day price chart

BTC/USD one-day price chart

If Bitcoin price plummets to the 200-day EMA at $24,837, it is likely to invalidate the bullish recovery thesis for the asset. The downside target is $24,342, a level that acted as support throughout March and April. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP