Bitcoin: Long-term holders sell $41.6B – Assessing the damage now

Key Takeaways

Why is Bitcoin’s price sliding again?

Long-term holders sold over 400K BTC in October, draining liquidity and strengthening bearish sentiment.

What could shift the BTC trend?

Analysts expect BTC to stabilize between $107K–$113K if demand rebounds and liquidation pressure eases.

Bitcoin’s [BTC] October optimism fades as capital flight grips the market

The bullish momentum that marked October weakened sharply as capital outflows dominated the market. Bitcoin slid to $103,700 at press time, its lowest level since the 17th of October.

Oversupply drives market weakness

Bitcoin’s initial drop on the 10th of October triggered a wave of distribution. Long-term holders—wallets inactive for at least six months drove a sharp decline by selling roughly 400,000 BTC, worth about $41.6 billion in October.

This shift confirmed that the same group that accumulated during the summer was now driving the correction.

Source: CryptoQuant

On top of that, whales compounded the pressure. One large holder sold 13,004 BTC worth $1.36 billion, including 1,200 BTC offloaded on the first weekend of November.

This large-scale profit-taking pushed Bitcoin closer to the $100,000 zone, turning sentiment decisively bearish.

Weak demand adds to the pressure

Bitcoin’s demand has weakened significantly, unable to match the pace of distribution in the market.

The Apparent Demand Growth over the past 30 days turned negative, indicating insufficient liquidity to absorb the ongoing sell-offs.

Source: CryptoQuant

The one-year Apparent Demand band also contracted, showing that net inflows from new participants slowed. In fact, this drop in demand left Bitcoin vulnerable to further downside even as broader macro conditions stayed mildly supportive.

Shawn Young, Chief Analyst at MEXC Research, told AMBCrypto that some recovery may be on the horizon.

“Accumulation of coins by major market participants, the trade agreement between Washington and Beijing, and moderately positive stock market performance are paving the way for a possible recovery in November,” he said.

Short-term drop still possible

While demand is beginning to build, Bitcoin could still experience another dip before stabilizing.

The Liquidation Heatmap showed clusters forming near the aforementioned price levels, potentially dragging the asset down to around $102,000.

These lower clusters could act as demand zones, setting the stage for a rebound toward the $110,000–$112,000 range.

Source: CoinGlass

Farzam Ehsani, CEO and Co-founder of VALR, believes the market remains fragile.

“A 10% move in either direction could trigger massive liquidations—roughly $11.39 billion in short positions if prices rise, or $7.55 billion in longs if they fall,” he said.

His outlook aligns with AMBCrypto’s analysis, which expects Bitcoin to consolidate within the $107,000–$113,000 range in the near term.