Bitcoin Long-Term Holders Show Decreased Activity 😱

Analysis of Bitcoin Long-Term Holders Selling Pressure

Recent data indicates that Bitcoin long-term holders have significantly reduced their selling pressure in the last ten days. These long-term holders, who have held their coins for more than 155 days, play a crucial role in the BTC market. On the other hand, short-term holders, who purchased their coins within the past 155 days, tend to react more impulsively to market conditions.

Behavior of Bitcoin Cohorts

Long-term holders (LTHs) are less likely to sell their coins compared to short-term holders.
LTHs are considered the more committed investors in the BTC market.
Short-term holders (STHs) are more prone to selling during market fluctuations or profit-taking opportunities.

Trend in Supply Distribution

By monitoring the total supply held by LTHs and STHs, analysts can gain insights into the market behavior of these two groups. Grayscale Bitcoin Trust (GBTC) has witnessed a constant outflow of coins since the approval of spot exchange-traded funds (ETFs) by the US SEC in January. These coins have now transitioned into the LTH category.

Current Status of Long-Term Holders

Recent bearish price action in Bitcoin has led to a stabilization in LTH supply, indicating a halt in selling from these committed holders. This shift in behavior could have implications for the future price movement of BTC.

Bitcoin Price Movement

Following the latest market correction, the price of Bitcoin has retreated to around $63,200. The recent price chart reflects the ongoing volatility in the market.