Recent analysis reveals a shift in the Bitcoin market dynamics. Short-term trading activity has decreased to 30%, easing selling pressure and suggesting a cooling down period for quick transactions. Meanwhile, long-term holders are gradually increasing their activity, signaling increased profit-taking as prices rise. Bitcoin’s on-chain data reveals this trend. The normalized address activity – a key indicator of how actively coins are moving – has dropped from 60% (the level seen at Bitcoin’s all-time high of $124K) to just 30%. This decrease indicates reduced short-term transactional intensity, likely due to fewer coins being traded on-chain. The reduction in selling pressure from short-term holders offers potential price stability, but long-term holders’ increasing activity could ultimately pose future resistance to the market. Long-term address activity is climbing towards 40%, a rise from 30% earlier and indicating that more seasoned investors are capitalizing on current prices. The recent increase in normalized address activity reflects a shift in market dynamics; we’re transitioning from high transaction activity to more strategic profit realization. For investors, these observations offer valuable insights: Short-term volatility may decrease as fewer quick trades occur. Meanwhile, the growing activity of long-term holders signifies an evolving market phase – one marked by maturation and likely increased resistance due to their potential to sell their holdings at a later date.