Despite Bitcoin's recent price struggles, on-chain data indicates that long-term holders are not selling their Bitcoin holdings, suggesting a continued bullish sentiment.

Long-term holders, who have historically been a key driver of Bitcoin's price movements, are not currently selling their Bitcoin, according to CryptoQuant's on-chain analyst Axel Adler Jr. This is despite Bitcoin's failure to sustain upside momentum after reaching an all-time high of $73,000.

The Long-Term Holder Spending Binary Indicator reveals that long-term holders sold 1.3 million BTC when Bitcoin peaked, but have since refrained from selling. Adler Jr. believes that this is a sign that smart money is waiting to enter the market at the local bottom, with long-term holders holding a significant amount of cash, around 1.3 million BTC.

Furthermore, Adler Jr. suggests that the current market conditions are ideal for a deep correction to filter out non-serious crypto investors. Short-term holders, on the other hand, have had three major profit-taking events at levels 28K, 44K, and 72K, but there was only a deep correction in August-September last year.

The upcoming week is expected to be crucial for the market, with key events such as the PPI, CPI, and Fed Chair Jerome Powell's speech. The recent University of Michigan consumer sentiment data revealed a fall in sentiment, while inflation expectations for the year ahead rose to a six-month high.

Despite the current market uncertainty, Bitcoin's price aims to recover, with the US government's budget surplus in April expanding to $210 billion, driven by higher tax receipts. The altcoin market cap is also holding steady, positioning itself for a future move to the upside.

In conclusion, the on-chain data suggests that long-term holders are not selling their Bitcoin holdings, indicating a continued bullish sentiment. The market is expected to be volatile in the coming week, but the fundamentals remain strong, with Bitcoin's price aiming to recover in the near future.