Bitcoin Long-Term Holders Analysis
Recent observations indicate that Bitcoin long-term holders, those investors who have held onto their BTC for over six months, have started distributing their holdings. This behavior is significant as long-term holders are typically resilient and hold onto their coins for extended periods.
- Long-term holders show strong conviction by holding onto their assets despite market conditions.
- They historically distribute their holdings during bull runs, taking advantage of high demand and high prices.
- The current ATH break has triggered long-term holders to start spending their profits.
Bitcoin LTH Supply Trend
An analysis of the supply trend of Bitcoin long-term holders over the years reveals interesting patterns:
- Recent data shows a decrease in the supply of Bitcoin held by long-term holders.
- Increases in supply have a delay due to the aging of newly purchased coins.
- Drawdowns in supply occur instantaneously as aged coins exit the group.
Implications for the BTC Cycle
Based on historical data, the current drawdown in Bitcoin long-term holder supply suggests that:
- The current BTC cycle may be around 40% complete in terms of distribution by long-term holders.
- This process typically lasts 6-8 months before new demand can absorb the sell-side pressure.
- Previous cycles have seen prices surge after the completion of distribution by long-term holders.
Bitcoin Price Movement
Bitcoin’s price has experienced significant volatility, with the cryptocurrency surging to $71,800 in the past 24 hours.
Hot Take: Assessing the Bitcoin Bull Run
A pattern in the holdings of the Bitcoin long-term holders may suggest that the current bull run is 40% of the way to completion.
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