Warning signs for Bitcoin? Long term holders are pulling back while retail investors are rushing in.

When Bitcoin falls from the all-time high of (ATH) of nearly $111,814 - currently trading around $100,000 - emerging on-chain data signals that the strong rise of this cryptocurrency over the past month may be weakening. Is Bitcoin about to have a deeper correction? According to a recent post by CryptoQuant Quicktake by contributor Amr Taha, the Bitcoin market is experiencing some notable on-chain changes. This includes significant outflows of stablecoin from Binance, a decrease in participation from long-term holders (LTH), and various accumulation patterns among wallet groups. One of the most prominent indicators is the outflow of over $1 billion in stablecoins from Binance. This suggests that traders are moving money off the exchange and into private wallets, which is often a sign of reduced risk appetite or a decrease in intent to buy cryptocurrencies in the near future.

Large-scale withdrawals of stablecoins typically indicate a decrease in purchasing power and may signal a loss of momentum in the market or a shift towards profit-taking and caution. If this trend continues, BTC could slide further, potentially losing the important psychological level of $100,000. At the same time, long-term holders (LTH) have also withdrawn. The actual net capitalization of LTH has fallen to the sky from $28 billion to just $2 billion by the end of May 2025 – signaling that these investors are no longer increasing their exposure despite the recent price surge.

Moreover, the 60-day wallet behavior trend indicates a divergence in market sentiment. Large holders with 1,000 to 10,000 BTC have gradually sold off their positions, while smaller retail groups holding 100 to 1,000 BTC have strongly accumulated, buying in as prices rise. Taha commented: The combination of strong stablecoin withdrawals, decreasing LTH accumulation, and changing behavior of the group signals that the market is transitioning. Whether this sets the stage for a cooling-off period, healthy consolidation, or new momentum will depend on how new capital re-enters the system and whether retail buyers can sustain the current price rise without institutional support. All hope is not lost While the above data suggests a potential price adjustment for high-end digital assets, other on-chain data indicates that BTC has the potential to continue its rising trajectory, possibly reaching a new ATH. CryptoQuant collaborator, Crypto Dan, recently emphasized that the realized Net Profit/Loss (NRPL) figure of Bitcoin supports a continuous upward trajectory, noting that the current profit-taking level is still modest compared to previous cycle peaks.

In addition, the flow of BTC out of centralized exchanges is increasing, with 7,883 BTC withdrawn from Coinbase recently. This may indicate renewed interest and accumulation by institutions in the context of anticipating another price rise. At the time of the press report, BTC was trading at $103,854, down 0.2% in the past 24 hours.