- Bitcoin’s short-term holder metric showed the recent consolidation has eroded their profits.
- An influx of new investors could arrive, which might lead to a price breakout.
As a seasoned crypto investor with a few bear market experiences under my belt, I find the recent Bitcoin consolidation and the subsequent erosion of short-term holder profits an intriguing development. The profitability dip for STHs, as observed by Axel Adler, is a positive sign that the market has shaken out the impatient investors, allowing the high-profit levels to reset and renew bullish energy for Bitcoin price growth.
As a researcher studying the cryptocurrency market, I’ve noticed that the profits for Bitcoin [BTC] short-term holders (STHs) took a hit, decreasing by 32% since March 13th. Previously, on that date, STH profits stood at a healthier 42%.
At press time, even though the price of Bitcoin is not much lower, the profit is at 10%.
The last two months have brought about a beneficial outcome. The turbulent period has weeded out impatienc market players, while resetting high profits. This leaves Bitcoin optimists with fresh motivation to push prices upwards.
As an analyst, I delved deeper into the on-chain data provided by AMBCrypto to examine the actions of both short-term and long-term investors in this market. The insights gleaned from their behavior may offer valuable clues about potential future price movements.
Using the realized price age bands to understand holders’ sentiment
As a researcher studying the Bitcoin market, I’ve discovered an intriguing pattern by examining the UTXO realized price age distribution metric. Notably, there has been heightened activity among Bitcoin holders whose coins are between one month and 18 months old since March. The intensity of this surge in activity differed, with shorter-term holders exhibiting more market engagement.
Instead of “On the other hand,” you could say “Conversely” or “In contrast.” For paraphrasing the second part, you could say “During this period, Bitcoin held by 18-month to 3-year-old investors exhibited a decrease in activity. This reduction in coin movement suggested that these holders were less likely to sell their Bitcoins. In turn, this indicated robust optimism among long-term investors, who anticipated substantial price increases.”
New investors could be poised to enter the market soon
Historically, Bitcoin (BTC) has tended to experience consolidation during the first two months following a halving event. Older Bitcoin holders often anticipate this trend and consequently, their level of activity remains relatively stable during this period, as they haven’t noticed any significant changes in the past couple of months.
In a recent post, Axel Adler brought up the fact that the market value of bitcoins held by investors for fewer than 30 days had experienced a significant decline in the past few weeks, but now seemed to be on the mend.
Is your portfolio green? Check the Bitcoin Profit Calculator
Should the current upward trend persist, it may herald a fresh stage of price growth for Bitcoin. This is something that investors and traders would be wise to monitor closely.
When our profits decline with something, it’s probable that there will be an upward trend. However, the required demand hasn’t materialized enough to trigger this price increase.
Read More
- Top gainers and losers
- DOP PREDICTION. DOP cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- STOG PREDICTION. STOG cryptocurrency
- KAI PREDICTION. KAI cryptocurrency
- MOCHI PREDICTION. MOCHI cryptocurrency
- SILLY PREDICTION. SILLY cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- BITCI PREDICTION. BITCI cryptocurrency
2024-06-04 03:03