Recent on-chain analysis reveals intriguing insights into Bitcoin's market dynamics, particularly regarding which segments are selling at current high price points. According to data from Santiment, one specific group of Bitcoin holders is engaging in profit-taking. The focus is on the Dormant Circulation indicator, which is a metric that tracks the movement of coins that have been inactive for specified periods on the blockchain.

The Dormant Circulation data offers insight into three timeframes: 90 days, 365 days, and 3 years. These periods signify how long coins remained stationary before being moved. Notably, in the past month’s cryptocurrency rally, the metric spiked for coins held over 90 and 365 days. Interestingly, the disparity between these spikes was minimal, suggesting that even coins held longer than a year were changing hands. This activity points to involvement from Bitcoin’s veteran cohort, the long-term holders (LTHs), who participated actively in selling.

Currently, the 90-day Dormant Circulation continues to show significant movement. Bitcoin's price surge above the $100,000 mark has sustained this trend. Yet, unlike in the previous month, the 365-day metric hasn't shown similar spikes. This lack of activity implies that coins aged between 90 and 365 days are being sold. This category includes both the older short-term holders (STHs) and the younger LTHs. Nonetheless, with no considerable selling from the broader LTH group, it appears that most of the transactions are from the STHs.

Reflecting on last month’s trends, it’s evident that many HODLers were quick to realize profits but are now poised for further gains. They seem to believe Bitcoin may continue its upward trajectory. STHs, known for their impulsive disposition, continue profit-taking amidst the $100,000+ price rally, underscoring their typical market behavior.

Currently, Bitcoin trades around $104,200, marking a rise of over 6% in the past week.