Bitcoin (BTC) is currently trading 13% below its record high of around $108,000, the highest since President-elect Donald Trump’s victory in the US election in early November.

Since then, the largest cryptocurrency has been 10% below its record high for several periods, a level that some investors are calling a correction.

The selling pressure comes from long-term holders (LTHs), which Glassnode defines as investors who have held Bitcoin for at least 155 days. They tend to sell into price strength after accumulating Bitcoin when prices are low.

LTHs were already distributing a significant amount of BTC about a week ago, previous research from CoinDesk showed. Since then, they have picked up the pace, reducing their total holdings to around 13.2 million BTC from around 14.2 million in mid-September.
They sold nearly 70,000 BTC on Thursday, the fourth-largest single-day selloff this year, according to Glassnode data.

On the other hand, for every seller there must be a buyer. In this case, it is the Short-Term Holders (STHs) who have accumulated around 1.3 million BTC over the same period. The number indicates that they have picked up coins from the LTHs and more.

In recent days the narrative has changed and LTHs want to sell more than short-term traders want to buy. This imbalance contributed to the price drop of around $94,500.

There are 19.8 million tokens in circulation and another 2.8 million on exchanges, although this balance continues to fall: around 200,000 Bitcoin have left exchanges in the last few months.

These cohorts are key to monitoring Bitcoin price activity over the next few days.