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An analysis says that as long-term Bitcoin (BTC) holders have shifted into a net-buying phase, the selling overhang that had served as a key source of downside pressure on the market throughout this year is easing.

According to CoinDesk, a cryptocurrency-focused outlet, long-term holders (Long-term Holder·LTH) who have held Bitcoin for at least 155 days were net buyers of about 33,000 BTC over the past 30 days. It is the first time since July that long-term holders have shown a net-accumulation trend.

According to data from on-chain analytics firm Checkonchain, the shift to net buying is largely driven by investors who bought Bitcoin over the past six months now rolling into the long-term holder cohort. As the pace of inflows from these new long-term holders has exceeded the amount distributed by existing long-term holders, a net increase has formed, the report said.

This year, selling by long-term holders has been cited as one of the biggest sources of selling pressure in the Bitcoin market. In fact, during the recent pullback, long-term holders sold more than 1 million Bitcoin, marking the largest selling pressure from that cohort since 2019.

This sell-off represents the third long-term holder distribution phase in the current cycle. The first came in March 2024, when Bitcoin reached $73,000, with about 700,000 sold. The second was in November that year, when Bitcoin hit $100,000, releasing more than 750,000 Bitcoin into the market.

The outlet said, "Given that it takes 155 days to be classified as a long-term holder, buying flows that entered over the past several months are now rolling into the long-term holder cohort, reshaping supply-demand dynamics," adding that this "suggests the burden of long-term holder selling on the market is gradually weakening."