Bitcoin (BTC) reached a fresh all-time high of $124,157 early Thursday, only to see its momentum fade and the price retreat to around $123,000. The slowdown above $120,000 has persisted since mid-July, raising the question: who is selling into these record levels? As reported by G.business citing coindesk.com, blockchain data points to long-term holders as the main source of selling pressure.

According to data from Bitcoin Magazine, wallets holding coins for at least 155 days have reduced their balances by more than 300,000 BTC over the past four weeks. Several dormant wallets, inactive for over a decade, have moved coins on-chain for the first time in years, likely to realize profits. Blockchain analytics firm Glassnode confirmed that while August saw slower profit-taking compared to July, last month recorded one of the largest selling periods in Bitcoin’s history, with daily realized profits exceeding $1 billion.

Gabriel Halm, senior blockchain analyst at Sentora, noted that this selling phase followed accumulation during Q2’s pullback, marking a potential shift in market structure. Sam Gaer, CIO at Monarq Asset Management, compared the current trend to last year’s wave of supply from Germany’s Saxony state liquidation, highlighting that the market has largely absorbed the selling so far.

Institutional call overwriting — selling higher strike call options to earn extra yield — has also influenced market behavior. Gaer explained that this has led to a “volatility crush,” with weekend implied volatilities in the teens, an unusual sign of a maturing market.

Despite the selling pressure, analysts believe the path of least resistance remains upward. Roughly 1.88 million addresses bought 1.3 million BTC at an average price of $118,000, creating a strong support layer. Macroeconomic factors also favor Bitcoin, as investors expect the U.S. Federal Reserve to cut interest rates in September while accepting post-COVID inflation levels above the 2% target.

Steve Gregory, founder of Vtrader, expects capital rotation from Ether back to Bitcoin, noting that 95% of ETH wallets are currently in profit — a scenario that may encourage traders to shift focus back to BTC.

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