Bitcoin Long-Term Holders Slow Down After 700,000 BTC Selloff, Reversal Sign?
16 Aprile 2024 - 9:00PM
NEWSBTC
On-chain data shows the Bitcoin long-term holder selling pressure
has been running out recently after an extended selloff from the
group. Bitcoin Long-Term Holders Have Sold Huge In Past 4 Months As
analyst James Van Straten explained in a post on X, the long-term
holders have massively reduced distribution during the last ten
days. The “long-term holders” (LTHs) here refer to the Bitcoin
investors carrying their coins since more than 155 days ago. The
LTHs comprise one of the two main divisions of the BTC sector, with
the other cohort known as the “short-term holders” (STHs). The STHs
are naturally the investors who bought within the past 155 days.
Related Reading: Bitcoin Has Next Major Demand Zone At $56,000:
Brace For Impact? Statistically, the longer an investor holds onto
their coins, the less likely they become to sell at any point. As
such, the LTHs represent the more committed part of the BTC market.
The STHs, on the other hand, are fickle-minded hands who may sell
at the first sight of any FUD or profit-taking opportunity. As
such, selling from the STHs is usually not that noteworthy.
However, Selloffs from the LTHs can be something to watch for, as
they rarely occur. One way to track the behavior of these Bitcoin
cohorts is through the total amount of supply they carry in their
respective combined wallets. The chart below shows the STH and LTH
supply trend over the past year. How the supplies held by these two
cohorts have changed during the past twelve months | Source:
@jvs_btc on X As displayed in the above graph, the supply of
Bitcoin LTHs increased through most of 2023. At the same time, the
supply of STHs naturally decreased. Something to note here is that
this increase in the LTH supply didn’t mean that these HODLers were
buying then. Instead, some STHs bought 155 days ago and have
finally held long enough to qualify for the cohort. Thus, there is
a 155-day delay between accumulation and the increase registered in
the LTH supply. When it comes to selling, though, no such time lag
exists, as the LTHs who transfer coins on the blockchain
immediately eject from the group and become part of the STHs. The
chart shows that this trend of the supply of these diamond hands
going up flipped this year, and the LTHs have been selling instead.
In the past four months, these investors have distributed 700,000
BTC. Related Reading: Bitcoin Whales Showing Different Behavior
From Past Cycles, But Why? This excludes the selloff from Grayscale
Bitcoin Trust (GBTC), which has constantly been bleeding coins
since the US SEC approved the spot exchange-traded funds (ETFs) in
January. These coins had also matured enough to become part of the
LTHs. Recently, as the price has gone through some bearish action,
the LTH supply has flatlined, implying that the selling from these
HODLers has finally stopped, at least for now. Given this new
trend, it now remains to be seen how BTC’s value develops from
here. BTC Price Following the latest drawdown in Bitcoin, its price
has dropped towards the $63,200 level. Looks like the price of the
asset has gone down recently | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, Glassnode.com,
chart from TradingView.com
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