- Bitcoin’s short-term holders held the market with a net position change value of +750k.
- BTC declined over the past week by 12.37%.
As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the complexities of Bitcoin [BTC]. The recent market trends have been particularly fascinating, given the struggle BTC has faced to maintain its momentum after hitting $108k.
After reaching $108,000, Bitcoin [BTC] has found it challenging to sustain its bullish trend. Consequently, Bitcoin has been fluctuating within a narrow price band of roughly $92,000 to $97,000.
Currently, Bitcoin is being exchanged for approximately $93,905 per unit, representing a 2.18% decrease in value over the past day. On a weekly basis, the digital currency has seen a drop of 12.37%.
Most individuals who purchased Bitcoin in November and other short-term investors are now experiencing a net loss due to this dip, causing analysts to ponder about its potential future impact.
Bitcoin’s LTH vs STH net position change
Based on Cryptoquant’s data, the long-term holders (LTH) have seen a decrease in their net position over the past 30 days, amounting to approximately 750,000 Bitcoins.
In spite of the recent alteration, Bitcoin’s value has maintained its strength and avoided a significant decline. This resilience can be attributed to the fact that short-term investors (STH) have persisted in amassing more Bitcoin as it reached yet another all-time high.
The net position change for short-term holders (STH) surged to a positive value of +750k BTC.
As Bitcoin prices rose, more short-term investors were buying, but the Short-Term Holder SOPR became negative. This suggests that these investors have been selling at a loss.
either they keep holding in hope of prices rebounding, or they buy at lower costs. If the desire among short-term holders to sell stays high and long-term holders (those planning to keep Bitcoin for a longer period) remain neutral or optimistic, it could potentially boost the momentum of Bitcoin’s price recovery.
If someone chooses to sell Bitcoin at a lower price, they might trigger more sales, causing the value to decrease even more. Short-term holders’ decisions significantly impact the trend of Bitcoin’s price movement.
By examining the distribution of coins sold over various time periods, it’s evident that short-term holders are currently offloading their coins at a higher rate. This is demonstrated by the fact that more coins (56 million) have been sold within a day and approximately 9 million have been sold within a week compared to long-term holders.
Over the past seven days, we’ve seen an increase in the balance between the amount of Bitcoins being traded and the available supply. This rise in exchange supply indicates that these previously used coins are being moved to exchanges. This could mean that traders are choosing to sell their Bitcoin tokens or are preparing to do so.
This suggests that STH traders are heavily engaged in speculative trading, sometimes selling assets below their value to subsequently buy them back at lower prices.
Implications on BTC?
It appears that at the moment, short-term investors have a strong grip on the market. This group may potentially increase selling activity, leading to a possible decline in Bitcoin’s price.
Read Bitcoin (BTC) Price Prediction 2024-25
When a company continues to offload their tokens, it suggests they have doubts about the market’s strength. This may lead them to purchase more at reduced prices following previous losses. If their overall holding position becomes similar to long-term investors and turns negative, there’s a possibility that Bitcoin could experience additional declines.
Given that bearish feelings linger, Bitcoin (BTC) might plummet down to approximately $92,130. But if strong hands (STH) keep up the demand, Bitcoin could make an effort to rebound and aim for around $95,800.
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2024-12-25 05:44