As Bitcoin price faced a notable jump in the early trading hours that increased the price by approximately 6.5%. The BTC price successfully trades beyond $16,500 after reaching the monthly lows below $15,500 in the previous days. We can say that the market participants may be a bit relieved with a minimal amount of accumulated buying volume, the revival of the bearish may be shortly validated.
Many the times, the long-term holders constantly accumulate the tokens without liquidating them at any point without concerning about the market trends. As per Coinpedia, the number of long-term holders has rising after the markets underwent a bull run in the year 2021. In addition to this their holdings stayed unspent and untouched and therefore called dormant.
As per the latest update, such dormant addresses have been spreading out their BTC reserves continuously stating a huge bearish event is approaching rapidly. As mentioned in Coinpedia Article, the on-chain data provider called CryptoQuant, the spent Output Afe bands from the 7 to 10 long years have peaked. Which means, the monger-term holders who held BTC for more than 7 years have been selling their holdings massively.
The latest price sell-off and the uncertain market trends could have forced the long-term holders to liquidate their holdings. Closer to 10,000 BTC has been sold which are anticipated to flood into the market any time from now. Therefore, building a fresh wave of bearish pressure that may push the BTC price towards new lows.