The bitcoin market may be entering a consolidation phase characterized by gradual selling from long-term holders, analysts claim.

"Long-term bitcoin holders and whales seem to be behind most of the recent bitcoin selling, both on exchange and also through OTC transactions," Bitfinex analysts said. "Historically, long-term holders tend to sell their holdings gradually during bull markets, and particularly when the market enters a consolidation phase — such as that which we are seeing currently."

The analysts highlighted the Bitfinex Hodler Net Position Change metric, which tracks whale holdings, revealing that large holders have consistently shown negative values for the past nine days. "Alongside the large-holder net position change, the bitcoin exchange whale ratio has continued to …