Breaking: Long-Term Bitcoin Hodlers Finish Profits, Analyst Says
Recent data suggests that long-term Bitcoin hodlers have completed profit-taking from their previously dormant coins following a strong start to the year, as noted by a reputable crypto market analyst.
Diving Into the Behavior Of Long Term Bitcoin Holders 📊
According to recent analysis by TXMCtrades, the bulk of the long-term holder supply that is expected to be activated during the current market cycle has likely been absorbed. This behavior is in line with previous market cycles where older supply tends to become active during market peaks to recoup risks taken over the years.
- The hodler cohort is typically in accumulation mode except during parabolic bull runs.
- Long-term holders have sold approximately 1.2 million BTC, with a significant portion coming from the declining Grayscale Bitcoin Trust (GBTC).
What Could This Mean For The Market? 🤔
Historical trends indicate that long-term holder supply has consistently risen over Bitcoin’s history, with exceptions during periods of rapid price surges to new all-time highs. Analysts like TXMC believe that significant buying/selling activity from long-term holders may not resume until the next major market breakout.
- James Check from Glassnode mentioned that Bitcoin has yet to retrace at least 20% from its recent highs, despite considerable sales by hodlers.
- A potential bear market could begin if Bitcoin falls below $58,000, a critical threshold for short-term holders.
Hot Take: Are Bears Lurking Around The Corner? 🐻
As Bitcoin continues to navigate through various market phases, the actions of long-term hodlers provide valuable insights into the overall sentiment and potential future movements. Monitoring the behavior of these market participants can offer clues as to whether a bear market is on the horizon.
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