Bitcoin's Long-Term Holder Supply Experiences Successive Drop Following Period of Ascendancy
Bitcoin Stands Firm at $103,000: A Sign of Resilience Amid Market Uncertainties
In the face of a volatile market, Bitcoin has managed to maintain its position above the $103,000 mark, exhibiting a remarkable resilience and indicating a robust upward trend. Following a minor pullback in Bitcoin's price, some seasoned investors have shown a concerning trend by ramping up their spending.
Long-term Bitcoin Holders Showing Cautious Optimism
Several technical indicators suggest that Bitcoin's uptrend is set to continue, despite a brief dip on Wednesday. Notably, a key shift has been observed among Bitcoin's long-term holders, often perceived as experienced investors.
Whale and Shark Investors Return with Aggressive PurchasesAfter a period of careful accumulation and hodling, long-term Bitcoin holders' supply has shown signs of hesitation as the price soars. This hesitancy raises questions about the sustainability of Bitcoin's upward trend and whether these investors might be reassessing their positions due to sluggish price performances.
According to financial data platform Glassnode, there has been a second consecutive decline in long-term holders' supply in May, hinting at weakening conviction among seasoned holders. Following a surge from 13.66 million BTC in mid-March to about 14.29 million BTC, the supply has dropped once more.
BTC Long-Term Holders' Spending on the RiseAdditionally, Glassnode reported a significant increase in BTC's long-term holders' spending, with the LTH Spending Binary Indicator metric reaching the 0.43 range on a 7-day time frame. This surge in spending warrants close attention, as sharp increases in this metric have often led to local market tops.
Rapidly Evolving Bitcoin Landscape
Although the decline in long-term holders' supply may not yet indicate a weakness, it introduces an element of complexity to Bitcoin's renewed upward movements. should the trend persist, it is likely to influence Bitcoin's direction, potentially leading to a temporary correction.
Long-Term Holders' Realized Price on the Rise
In another report on the X platform, Glassnode highlighted the increase in BTC's long-term holders' realized price. A closer examination of the Bitcoin Long/Short-Term Holders On-Chain Basis showed that LTH's realized price has risen to the $45,340 level, signifying a significant turning point that underlines growing optimism among experienced investors.
Long-Term Bitcoin Holders Growing More ConfidentThe Bitcoin Long/Short-Term Holders On-Chain Basis metric, which represents the average purchase cost of Bitcoin held for 155 days or more, has been steadily increasing over time. This suggests that long-term holders are gradually accumulating the asset at higher price levels. According to Glassnode, this is indicative of the aging of coins purchased in the $90,000 to $100,000 price range shifting into long-term status.
With the 155-day cut-off, the metric shows that BTC buyers from December 24 have now been classified as long-term holders, resulting in a progressive increase in their cost basis. This strengthening cost basis supports the hypothesis that long-term investors continue to remain optimistic about Bitcoin's long-term prospects.
[1] https://glassnode.com/research/ontology/home/metrics/binary_days_destroyed[2] https://news.bitcoin.com/2021/06/16/long-term-crypto-holders-are-holding-steady-while-retail-investors-exit-amid-bitcoin-sideways-price-action/[3] https://decrypt.co/69421/bitcoin-just-had-its-highest-ever-spending-week-by-long-term-holders-signal-bullish[4] https://decrypt.co/69313/new-data-charts-bitcoin-market-from-a-bear-market-death-cross-to-a-golden-cross-and-a-potential-bull-trap[5] https://glassnode.com/chart/lth-spent-output-profit-ratio-155d00-usd
1. Amid the increasing spending by BTC's long-term holders, some investors are reassessing their positions due to digital currency's sluggish price performances.2. The uptick in Bitcoin's long-term holders' spending, as reported by Glassnode, could potentially lead to local market tops, given sharp increases in the LTH Spending Binary Indicator metric have historically preceded such events.
