Bitcoin Long-Term Holders & Price Top: Glassnode Reveals Pattern
22 Março 2024 - 9:30PM
NEWSBTC
The on-chain analytics firm Glassnode has explained that Bitcoin
tends to reach a potential top when the long-term holders show this
pattern. Bitcoin Long-Term Holders Have Been Ramping Up
Distribution In a new report, Glassnode discussed the influence
that the BTC long-term holders have on the cryptocurrency’s supply
dynamics. The “long-term holders” (LTHs) here refer to the Bitcoin
investors who have been holding onto their coins for more than 155
days. The LTHs comprise one of the two main divisions of the BTC
user base based on holding time, with the other cohort known as the
“short-term holders” (STHs). Related Reading: Bitcoin Cash (BCH)
Surges 15% As Coinbase Plans Futures Listing Historically, the LTHs
have proven themselves to be the persistent hands of the market.
They don’t quickly sell their coins regardless of what is happening
in the broader sector. The STHs, on the other hand, often react to
FUD and FOMO events. As such, it’s not unusual to see the STHs
participating in selling. However, the LTHs showing sustained
distribution can be something to note, as selling from these
HODLers, who usually sit tight, may have implications for the
market. There are many different ways of tracking the behavior of
the LTHs, but in the context of the current discussion, Glassnode
has used the “LTH Market Inflation Rate” metric. As the report
explains: It shows the annualized rate of Bitcoin accumulation or
distribution by LTHs relative to daily miner issuance. This rate
helps identify periods of net accumulation, where LTHs are
effectively removing Bitcoin from the market, and periods of net
distribution, where LTHs add to the market’s sell-side pressure.
Now, here is a chart that shows the trend in the BTC LTH Market
Inflation Rate over the past several years: The value of the metric
seems to have been on the rise in recent days | Source: Glassnode
In the chart, the analytics firm has also attached the data for the
asset’s Inflation Rate, which is basically the amount that the
miners are introducing into the circulating supply by solving
blocks and receiving rewards for them. When the LTH Market
Inflation Rate equals 0%, these HODLers are accumulating amounts
exactly equal to what the miners are issuing. This implies that the
indicator below the 0% mark suggests the LTHs are pulling coins out
of the supply, while it being above is a sign that they are either
distributing or just not buying enough to absorb what the miners
are producing. The graph shows that historically, the
cryptocurrency’s price has tended to reach a state of equilibrium
and potentially even a top when the LTH distribution has peaked.
Related Reading: Bitcoin Traders Capitulate: Here’s What Happened
Last 2 Times The LTH Market Inflation Rate has been increasing
recently, but it’s yet to reach any significant levels. As for what
this could mean for the market, Glassnode says: Currently, the
trend in the LTH market inflation rate indicates we are in an early
phase of a distribution cycle, with about 30% completed. This
suggests significant activity ahead within the current cycle until
we achieve a market equilibrium point from the supply and demand
perspective and potential price tops. BTC Price Bitcoin has
retraced most of its recovery from the past few days, as its price
has now declined to $63,800. Looks like the price of the asset has
witnessed a drawdown again | Source: BTCUSD on TradingView Featured
image from Kanchanara on Unsplash.com, Glassnode.com, chart from
TradingView.com
Bitcoin Cash (COIN:BCHUSD)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
Bitcoin Cash (COIN:BCHUSD)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024