Bitcoin Hodlers Reversing Their Trend: A Bullish Indicator?
Recent on-chain data suggests that Bitcoin long-term holders (LTHs) have started selling their holdings, a trend historically associated with bull markets. According to market intelligence platform IntoTheBlock, LTHs are defined as investors who have held their Bitcoin for at least one year. The data shows that LTHs had been continuously adding to their balance since the end of the 2021 bull run, until recently when a reversal in the trend occurred.
It is important to note that increases in the total Bitcoin balance of LTHs do not necessarily indicate present buying activity but rather imply buying that occurred a year ago. However, the recent selling by LTHs is reminiscent of a similar pattern observed during the 2021 bull run.
The Behavior of Bitcoin Hodlers
- LTHs are investors who have held their Bitcoin for at least one year.
- The recent selling trend by LTHs may suggest a shift in sentiment.
- LTHs sold approximately 200k BTC from their collective balances since the beginning of the year.
- This marks nearly 3 months of consecutive net decreases in LTH holdings.
- In the previous bull run, LTHs reduced their holdings by 15%.
- So far in the current rally, LTHs have shed about 1.5% of their reserves.
BTC Price and Market Outlook
At the time of writing, Bitcoin is trading around the $51,000 level, experiencing a 2% decrease over the past week. It remains to be seen how the recent selling by LTHs will impact the overall market sentiment and whether it signals a potential shift in the ongoing bull market.
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