On-chain data shows that long-term bitcoin holders have seen their supply increase recently despite the FUD circulating in the market.
The balance of bitcoin HODLers has seen an increase recently
According to data from the market intelligence platform x.com/intotheblock/status/1813120661256032577″ target=”_blank” rel=”noopener nofollow”>In the blockThe supply of long-term holders has recently expanded. IntoTheBlock defines “x.com/intotheblock/status/1813120661256032577″ target=”_blank” rel=”noopener nofollow”>long term holders” (LTH) or HODLers as those investors who have held their coins for at least one year.
Statistically, the longer a holder keeps their coins idle, the less likely they are to sell them at some point. As such, LTHs, which tend to be held for relatively long periods, represent the stubborn side of the market.
While short-term holders (STH) can easily sell during dips or rallies, these diamond hands usually hold firm regardless of the situation in the sector.
Recently, the bitcoin market has been generating FUD as bankrupt cryptocurrency exchange Mt. Gox distributed coins back to their rightful owners and the German government sold btc it had confiscated.
Despite this, it seems that HODLers have not minded much, as their combined balance has seen an increase over the past week. The chart below shows this development.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Bitcoin-HODLers-gain-share-despite-fear-uncertainty-and-doubts-about.jpeg" alt="Long-term bitcoin holders offer” width=”1717″ height=”429″/>
Looks like the value of the metric has seen an increase recently | Source: x.com/intotheblock/status/1813120661256032577/photo/1" target="_blank" rel="noopener nofollow">IntoTheBlock on x
Remember that any increase in bitcoin’s LTH balance doesn’t mean that these HODLers are buying right now. Rather, it suggests that some buying occurred a year ago and that these coins have matured enough to become part of the cohort.
However, the sale is immediately reflected in the indicator, as coins see their age reset to zero as soon as they move through the network, leading to them no longer being counted within the cohort.
As such, while this increase in the metric does not indicate accumulation at present, it does say that these investors who bought a year or more ago are still comfortable with HODLing even during recent market conditions.
In other news, an analyst noted on CryptoQuant Quicktake mail that the Coinbase premium gap has been positive recently. This metric records the difference between the bitcoin prices listed on the Coinbase (USD pair) and Binance (USDT pair) cryptocurrency exchanges.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Bitcoin-HODLers-gain-share-despite-fear-uncertainty-and-doubts-about.png" alt="Coinbase Premium Gap on bitcoin” width=”1280″ height=”503″ data-recalc-dims=”1″/>
The value of the metric appears to have seen a rise in recent days | Source: CryptoQuant
These positive values of the indicator suggest that Coinbase is now experiencing greater buying pressure than Binance. The platform is known to be the preferred choice of US institutional investors, so it is possible that purchases by these large entities are driving the recovery.
btc Price
bitcoin has broken above the $64,400 level again after experiencing a surge of over 12% over the past seven days.
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The price of the coin appears to have been going up over the past few days | Source: BTCUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, IntoTheBlock.com, chart by TradingView.com
