Are Bitcoin Long-Term Holders Taking Profits at the $120K Resistance?

Bitcoin long-term holders turned net negative near $120K, suggesting a shift in behavior around a historically critical resistance level.

Galaxy Digital reportedly sold 80,000 BTC, signaling large-scale institutional movement as prices test the $120K psychological threshold.

Traders are watching closely to see if other institutional holders will follow Galaxy’s lead or if this marks isolated profit-taking behavior.

Long-term Bitcoin holders are now unwinding their positions at $120,000 with a possible change of market appetite. This activity comes as the cryptocurrency tests a crucial resistance level, historically tied to investor sentiment.

Long-Term Holders Turn Net Negative at $120K

According to recent data shared by CryptoQuant.com, long-term holders (LTHs) have moved into a net negative position as Bitcoin approaches $120,000. The development raises attention due to the psychological relevance of this price point in previous market cycles.

Analyst @burak_kesmeci noted that this change indicates some longtime investors may be choosing to secure profits. While this type of action is not uncommon, especially near key levels, its timing could hint at a cautious market stance.

Though the current scale of profit realization is moderate, this behavioral shift introduces uncertainty regarding whether a broader trend may emerge in the near term.

Galaxy Digital’s Move Adds Institutional Weight

Adding to market attention is Galaxy Digital’s reported sale of 80,000 BTC. The volume involved moves far beyond retail-level activity and suggests institutional strategies are at play. While not confirmed as part of a broader trend, this sale carries weight in shaping sentiment.

This action introduces the question of whether other large entities could follow a similar approach. For now, Galaxy Digital stands out as a major seller at current levels, contrasting the largely dormant behavior of other top holders.

The market now awaits further institutional responses to gauge if this is an isolated move or the start of a trend-driven phase.

Market Observers Eye Next Steps

As profit-taking appears controlled, investors remain alert to whether the trend accelerates or stalls. The timing of Galaxy Digital’s move, combined with LTH net negative positioning, puts additional focus on short-term price action.

CryptoQuant.com’s analysis suggests caution, not panic. The behavior of long-term holders is crucial for setting the tone of the coming weeks. Traders and institutions alike will be watching for confirmation or rejection of this early repositioning.

For now, all eyes are on whether the $120,000 barrier holds—or signals a turning point.

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