Is This Bitcoin Rally Already Over? HODLers Don’t Think So

On-chain data shows the Bitcoin long-term holders haven’t reacted much to the crash as their supply has stayed near all-time highs.

1. Bitcoin Long-Term Holders (LTHs) Accumulating:

  • On-chain data reveals that Bitcoin long-term holders (LTHs) have been accumulating, with their supply reaching near all-time highs.
  • LTHs are investors who have held onto their coins for at least a year without selling or transferring them on the blockchain.

2. Diamond Hands and Market Dynamics:

  • LTHs, also known as “diamond hands,” exhibit strong resolve and are less likely to participate in selling, regardless of market conditions.
  • The longer holders keep their coins on the network, the less likely they are to move them, making LTHs a stable segment in the market.

3. Short-Term Holders (STH) and Market Implications:

  • Short-Term Holders (STH), those who bought within the past year, are more likely to sell compared to LTHs.
  • Monitoring LTH supply can provide insights into potential market movements, as any deviation from their usual accumulation trend may signal significant activity.

4. Bitcoin Long-Term Holder Supply Trend:

  • Chart analysis of the Bitcoin LTH supply over several years shows a consistent uptrend, indicating continuous accumulation by these long-term investors.
  • Despite recent market fluctuations, LTHs have not reacted to the plunge in cryptocurrency prices, suggesting ongoing accumulation.

5. Market Outlook:

  • The data implies that LTHs do not believe the top of the market is near, as they continue to accumulate despite recent price volatility.
  • The recovery of Bitcoin above $44,000 indicates resilience in the market, with LTHs not showing signs of selling at this point.

Note: The blog post also mentions Bitcoin’s recent price recovery, but the focus is on the behavior of long-term holders and the potential implications for the market.

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