INSIGHT: Bitcoin's bottoming process is advancing, but downside risk remains despite peak long-term holder capitulation, according to Glassnode.

What happened

Glassnode says Bitcoin’s price is in a bottoming phase, with long‑term holders selling heavily, but the risk of further declines still exists.

Confirmed

Global impact / market context

When long‑term holders sell, it can signal weakening confidence, potentially lowering demand and price; however, a bottoming process may attract new buyers looking for lower entry points.

Analyst inference

Bitcoin’s recent price moves follow a period where many investors who held for years reduced positions, creating a supply surge that could pressure prices, while technical signs suggest the decline may be losing momentum.

Analyst inference

What to watch

1. Changes in long‑term holder balances – a rise could show renewed confidence, while further drops would increase downside pressure. Proposed
2. Bitcoin’s on‑chain activity such as transaction volume, which can indicate whether buying interest is picking up. Proposed
3. Regulatory announcements or macro‑economic data that could shift risk appetite and affect Bitcoin’s price direction. Proposed

Affected assets

• BTC — Bitcoin

Evidence

• x.com