Analyst Identifies Key Sellers During Bitcoin’s Recent Price Surge

Bitcoin's price movement remains under scrutiny as it stays below $100,000. After achieving an all-time high above $108,000 last week, Bitcoin has struggled to maintain this momentum.

Current analysis focuses on Bitcoin's on-chain data, particularly the Spent Output Age Bands (SOAB) indicator, which provides insights into holder activity based on their holding periods.

Who Cashed Out Their Bitcoin Gains?

CryptoQuant analyst Yonsei Dent reports that investors who acquired Bitcoin six to twelve months ago were the most active sellers during the recent price surge.

Bitcoin Spent Output Age Bands

This group entered the market amid excitement over spot Bitcoin exchange-traded funds (ETFs). Their selling pressure contributed to Bitcoin stabilizing within the $90,000–$100,000 range.

Long-term holders, defined as those holding Bitcoin for over a year, have exhibited minimal selling activity, likely awaiting higher prices for profit-taking.

Dent also noted a decline in older Bitcoin transfers in December compared to November, indicating reduced activity from long-term holders. This historically signals market resilience and potential for upward momentum.

The analyst stated:

The 'Binary CDD' indicator shows a decline in the selling of older Bitcoin in December compared to November, suggesting many long-term holders anticipate even higher prices before selling.

Binance Reserves Signal Market Confidence

Another important metric is Binance's declining Bitcoin reserves, which have dropped since August.

Analyst Darkfost highlighted that Binance’s reserves recently reached their lowest level since January. A similar trend earlier this year preceded a significant price surge for Bitcoin.

Binance's Bitcoin reserves

The decrease in exchange reserves typically indicates that investors are transferring Bitcoin to private wallets, reflecting reduced selling pressure and a preference for long-term holding strategies.

Bitcoin (BTC) price chart on TradingView

Currently, BTC trades at $95,567, down 2.7% in the past day. The combination of long-term holder confidence, reduced activity from older wallets, and declining exchange reserves suggests a cautiously optimistic outlook for Bitcoin’s near-term trajectory.

However, sustained buying activity is necessary to overcome psychological resistance levels and maintain upward momentum.

Featured image created with DALL-E, Chart from TradingView