The cryptocurrency market, particularly Bitcoin (BTC), has been experiencing significant shifts due to the behavior of long-term holders. According to a recent update from Glassnode, 3-5 year BTC holders reached an all-time high (ATH) of 15.7% of the total supply on November 9, 2024, marking the highest level since March 2017. This accumulation by long-term holders signaled strong confidence in Bitcoin’s value during that period. However, soon after reaching this peak, these holders began selling off portions of their stash, indicating a potential shift in sentiment or profit-taking behavior. The selling paused briefly before resuming in April 2025, bringing their supply share down to 11.9% as of the latest data shared by Glassnode on June 2, 2025. Despite this reduction, their supply share remains significantly above the cycle low of approximately 3%, suggesting a persistent overhang in the market. This selling pressure from long-term holders could impact Bitcoin’s price stability, especially as it coincides with broader market dynamics. For traders, understanding this trend is critical for identifying potential entry and exit points, as long-term holder behavior often serves as a bellwether for major price movements. The interplay between this selling activity and other market forces, including stock market correlations, offers unique trading opportunities for those monitoring Bitcoin’s price action across multiple timeframes. As of June 2, 2025, at 10:00 UTC, BTC was trading at approximately $68,400 on major exchanges like Binance, reflecting a 2.3% decline over the previous 24 hours, potentially influenced by this ongoing sell-off.

The implications of this selling by 3-5 year BTC holders are multifaceted for crypto traders. With 11.9% of the supply still held by this cohort as of June 2, 2025, there remains a substantial amount of potential selling pressure that could suppress upward price movements. This is particularly relevant when correlated with stock market events, as Bitcoin often reacts to shifts in risk appetite among institutional investors. For instance, on June 1, 2025, the S&P 500 index dropped by 1.8% at 14:00 UTC, reflecting broader economic concerns, which coincided with a spike in BTC trading volume on platforms like Coinbase, reaching 25,000 BTC in a 4-hour window. This suggests that institutional money may be rotating out of risk assets, including Bitcoin, during periods of stock market volatility. Traders can capitalize on these cross-market dynamics by monitoring BTC/USD and BTC/ETH pairs for breakout opportunities or reversals. Additionally, the selling behavior of long-term holders could signal a redistribution of wealth to newer investors, potentially increasing liquidity in the market. This creates short-term trading setups, especially for scalpers looking at 1-hour or 4-hour charts on exchanges like Kraken, where BTC volume surged by 18% on June 2, 2025, at 12:00 UTC. Keeping an eye on stock market indices like the Nasdaq, which also saw a 2.1% decline on June 1, 2025, can provide further clues about Bitcoin’s next move.

From a technical perspective, Bitcoin’s price action as of June 2, 2025, at 15:00 UTC, shows a bearish divergence on the Relative Strength Index (RSI) on the daily chart, hovering at 42, indicating potential further downside. The 50-day moving average (MA) for BTC/USD on Binance sits at $69,200, acting as immediate resistance, while support lies near $66,500. On-chain metrics from Glassnode reveal that the total transfer volume on the Bitcoin network spiked to 320,000 BTC on June 1, 2025, at 20:00 UTC, a 15% increase from the prior day, reflecting heightened activity likely tied to long-term holder sales. This aligns with a 10% uptick in exchange inflows over the same period, suggesting selling pressure is indeed mounting. When correlated with stock market movements, the Dow Jones Industrial Average’s 1.5% drop on June 1, 2025, at 16:00 UTC, appears to have exacerbated risk-off sentiment, pushing BTC’s 24-hour trading volume on Bitfinex to 18,500 BTC by June 2, 2025, at 09:00 UTC. Institutional flows between stocks and crypto are evident, as crypto-related stocks like MicroStrategy (MSTR) saw a 3.2% decline on the same day, reflecting a broader retreat from risk assets. Traders should watch for a break below $66,500 on BTC/USD, which could trigger further liquidations, or a reclaim of $69,200, signaling a potential reversal. The correlation between Bitcoin and stock indices remains strong, with a 0.75 correlation coefficient against the S&P 500 over the past 30 days, per data from CoinGecko as of June 2, 2025. This interconnectedness highlights the importance of cross-market analysis for informed trading decisions.

In summary, the selling by 3-5 year BTC holders, combined with stock market volatility, creates a complex but opportunity-rich environment for crypto traders. Institutional money flows between equities and cryptocurrencies are likely to continue influencing Bitcoin’s price, especially as risk sentiment fluctuates. By leveraging technical indicators, on-chain data, and stock market correlations, traders can navigate these conditions with precision, focusing on key levels and volume changes across multiple trading pairs like BTC/USD and BTC/ETH.