On-chain data shows that long-term bitcoin holders have seen their supply record a sharp net increase over the past month.
bitcoin Long-Term Holder Supply Is Growing Rapidly Right Now
As CryptoQuant community manager Maartunn explains in a new x.com/JA_Maartun/status/1841084394968166435″ target=”_blank” rel=”noopener nofollow”>mail In x, the btc supply has recently been maturing into the cohort of long-term holders. “Long-term holders” (LTH) refer to bitcoin investors who have held their coins for more than 155 days.
LTHs make up one of the two main divisions of the btc sector based on holding time, with the other cohort being known as “short-term holders” (STH). STHs generally represent the fickle side of the market, while LTHs contain the resolute hands.
There are many indicators to track the behaviors of these two groups, one of them is the LTH net position change. This metric measures, as its name implies, the net changes in the combined supply of HODLers. When the value of this metric is positive, it means that the supply of LTH is increasing. On the other hand, if it is less than zero, it suggests that a net amount of coins is leaving this cohort's holdings.
Now, here is a chart showing the trend in bitcoin's 30-day LTH net position change over the history of the cryptocurrency:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/HODLer-bags-grow-by-959000-BTC.jpeg" alt="bitcoin LTH Net Position Change” width=”4000″ height=”2250″/>
The value of the metric appears to have seen a large positive spike in recent days | Source: x.com/JA_Maartun/status/1841084394968166435/photo/1" target="_blank" rel="noopener nofollow">@JA_Maartun on x
As shown in the chart above, bitcoin's 30-day LTH net position change had plummeted to sharply negative values as the btc price had risen to a new all-time high (ATH) in the first quarter of the year. This would suggest that even these investors, who do not tend to sell easily, were unable to escape the lure of profit-taking that came with the rally. This profit-making by diamond hands had continued for some time, even when the currency had reached its peak.
However, in recent months, the metric has shown a shift, with an especially large increase over the past month. In the last thirty days, the supply of LTH has increased by 959,000 btc, which is a fairly significant amount. However, one thing that should not be misunderstood is what this positive spike in net position change indicates. LTHs have not “bought” anything with this surge, the only thing that has happened is that some coins, which were purchased 155 days ago, have been held long enough to qualify for this group.
While the HODLer accumulation has this 155-day delay, the same is not true for the sale. Coins leave the LTH supply as soon as they break dormancy through a network transaction, so the sale can be considered to be instantly reflected in the indicator.
Diamond hands may or may not have been involved in “buying” bitcoin recently, but the fact that the coins are maturing on the network is still a positive sign in any case, as it suggests that investors are willing to HODL at the moment.
btc Price
bitcoin has declined another 3% in the last 24 hours, now reaching the $60,800 mark.
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Looks like the price of the coin has been slipping down recently | Source: BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
