We’re currently seeing a period of heightened activity from Long Term Holders, meaning investors who have held their BTC for more than six months.
Their behavior is often viewed as a leading indicator because they still control 80% of the BTC supply and are typically patient profiles who only move or spend their coins when the market reaches a key point for them.
A large part of this activity is happening on Binance. That’s not really surprising, since it’s the exchange with the deepest liquidity and the largest trading volumes. For many investors, whether retail or institutional, it’s the preferred platform to execute large transactions while minimizing price impact.
The indicator used here specifically tracks BTC inflows from LTHs into Binance. A signal is triggered when these inflows rise to twice their yearly average, helping to identify moments when LTHs start shifting their positions in an unusual way.
Right now, we’re clearly seeing an uptick in these inflows. It’s not as pronounced as in some past episodes, but it’s noticeable enough to pay attention to.
When LTHs begin sending more BTC to exchanges, it can quickly change the market balance.
Their selling pressure can ramp up very quickly and a rise in LTH inflows on Binance can create periods of heightened volatility, with sharper price movements. This is exactly the kind of signal we need to monitor closely those days as BTC reached a critical level.
Written by Darkfost
