According to data, the Bitcoin long-term supply has mostly moved in the opposite direction from the October high.
The Bitcoin long-term holder supply has stagnated as sell-side balances buy-side
According to the most recent weekly Glassnode report, BTC long-term holders accumulation appears to have stopped after the October high.
The “long-term holder” (or LTH in short) supply is the part of the total Bitcoin supply that hasn’t observed any movements since at least 155 days ago.
If this indicator’s value rises, that means more coins are maturing above the threshold. Sustained such trend can be a sign of accumulation from investors, and can prove to be bullish for the crypto’s value.
A downtrend in the metrics on the other hand means that LTHs have sold their coins, thus resetting their age back to zero. These holders are usually considered bearish indicators for Bitcoin’s value.
Below is a graph that illustrates the change in BTC’s long-term holder supply during the last several years.
It appears that the value of this indicator seems to have stagnated in recent times. Source: Glassnode’s The Week onchain Week 12, 2022| Source: Glassnode's The Week Onchain - Week 12, 2022
As you can see in the above graph, the Bitcoin long-term holder supply hasn’t shown much movement since the high in October.
It seems like the indicator follows a similar pattern in recent years. LTHs both in 2019 and 2021 sold their coins to kick off the bull rallies.
Similar Reading: Bitcoin NUPL suggests a Bear Market Still To Reach Full Swing| Bitcoin NUPL Suggests Bear Market Yet To Hit In Full Swing
After the rally ended, holders started to collect Bitcoin. At present, the holders have stopped the trend of hodling that started back in April 2021, but they also haven’t sold off.
This suggests that coins in the LTH range maturing are being sold from their holders.
Bitcoin Bullish Signal: Exchange Reserve Loses Another 50k BTC Over Past Week| Bitcoin Bullish Signal: Exchange Reserve Loses Another 50k BTC Over Past Week
Now it remains to see if Bitcoin’s long-term owners will sell in the immediate future or if they will revert back into an accumulation trend until the next bull run.
BTC price
At the time of writing, Bitcoin’s price floats around $42.9k, up 10% in the last seven days. The crypto gained 15% over the last 30 days.
Below is a chart showing the change in BTC’s price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin was above $40k for the past few days. Today, the coin soared to above $43k before falling back to its current level.
Unsplash.com featured image, Charts from TradingView.com and Glassnode.com charts