Long-term holders are increasing their bitcoin positions, softening a major market drag.

Long-term bitcoin holders (LTHs) have returned to net accumulation for the first time since July, signaling a shift after months of heavy selling.

Defined as wallets holding bitcoin (BTC $87,768.09) for at least 155 days, LTHs accumulated roughly 33,000 BTC on a 30-day net basis, according to onchain analytics firm checkonchain. Earlier in the year, LTH selling was a major source of downward pressure, alongside miner capitulation, when miners liquidate bitcoin while mining at a loss.

The recent accumulation indicates that buyers from the past six months are transitioning into long-term holders, outpacing distribution. During the 36% correction in October, LTHs sold over 1 million BTC — the largest sell-off from this group since 2019, a year that ended near bitcoin’s bear market low of $3,200.

October’s sell-off marked the third major LTH distribution phase of the current cycle. The first occurred in March 2024, when bitcoin reached $73,000 and over 700,000 BTC were sold, followed by a second in November 2024, when more than 750,000 BTC were distributed as bitcoin peaked at $100,000.