Bitcoin’s recent rally to new all-time highs has been met with heavy selling from long-term holders, raising concerns among analysts that the cryptocurrency could face a deeper correction in the weeks ahead.
Data shows that investors who typically hold Bitcoin for six months or longer have sold more than 241,000 BTC in the past month, worth an estimated $26.8 billion at current prices.
Long-Term Holders Exit Positions
According to CryptoQuant analyst Maartunn, the 30-day rolling supply change for long-term holders (LTHs) has dropped significantly.
“That’s one of the largest drawdowns since early 2025,” Maartunn noted in a recent update.
The selling coincides with Bitcoin reaching an all-time high above $124,500 in August, prompting many seasoned investors to take profits.
Large investors, often referred to as whales, have also added to the pressure by unloading more than 115,000 BTC over the same period.
This trend has compounded the selling pressure and could weigh further on the market.
Institutional Demand Slows
Despite treasury companies now holding a record 1 million BTC, their pace of accumulation has slowed sharply.
Strategy, one of the largest corporate Bitcoin buyers, reduced its purchases from 134,000 BTC in November 2024 to just 3,700 BTC in August 2025.
Other companies also scaled back, acquiring only 14,800 BTC in August compared with 66,000 BTC in June.
CryptoQuant said August purchases fell below 2025 averages of 26,000 BTC for Strategy and 24,000 BTC for other firms.
“Smaller, cautious transactions show institutional demand is weakening,” the firm’s Weekly Crypto Report stated.
Charles Edwards, founder of Capriole Investments, added that the number of companies buying Bitcoin daily has also fallen, a potential sign of “exhausted” institutional interest.
Price Correction and Bear Flag Concerns
The price of Bitcoin has reflected this slowdown.
After peaking at $124,500 on August 16, Bitcoin slid 14% to a seven-week low of $107,500 by the end of the month.
It has since recovered to around $111,500 but remains under pressure.
Chart analysts note that Bitcoin has formed a bear flag pattern on the daily timeframe.
The cryptocurrency recently dropped below the flag’s lower boundary at $112,000, which also aligns with its 100-day simple moving average.
Failure to turn this level into support could see prices fall toward $95,500, marking a potential 14.5% decline from current levels.
Macro Outlook Still Supportive
Not all analysts are bearish.
X user Coin Signals pointed out that the current 13% pullback from the record high is relatively shallow compared with previous drawdowns.
Some forecasts suggest that Bitcoin could still dip below $90,000, but the broader trajectory remains pointed toward new highs in the longer term.
A 30% decline from the August peak would place the bottom around $87,000, which coincides with the realized price for holders who bought within the last six to 12 months.
That level could act as a strong support zone if the sell-off deepens.
For now, the market remains caught between profit-taking from experienced holders and cautious institutional demand on one side, and a still-optimistic long-term outlook on the other.
