Bitcoin: Major groups keep the faith as BTC remains at $62K

  • Long term Bitcoin holders refuse to sell their holdings.
  • Short term holders showcase a similar perspective, causing BTC’s price to surge.

Bitcoin [BTC] has been stagnating at the $62,000 level for quite some time, causing restlessness amongst traders hoping for a positive jump in price.

Long term holders show faith

However, it was seen that long-term holders refused to sell their holdings despite the stagnancy of the market.

These are investors who have held onto their Bitcoins for a significant period, typically defined as over 155 days (or five months).

They are generally considered believers in the long-term potential of Bitcoin and are less likely to be swayed by short-term price fluctuations.

The current behavior of LTHs is similar to what was observed in 2021. Back then, LTHs also held onto their coins for extended periods, which coincided with a significant bull run in the Bitcoin price.

Historically, periods of LTH accumulation have been associated with price rises in Bitcoin. This is because if fewer coins are available for sale, it can drive up the price if there is increased demand.

Screenshot 2024 05 13 at 2.25.03 PM

Source: X

Its HODLing season

However, it wasn’t just short-term holders that were displaying faith in the king coin.

Traditionally known for selling quickly at a loss during price dips, data suggests they might be holding onto their coins even during pullbacks.

This shift, with only a small amount of Bitcoin being sent to exchanges at a loss recently, could have positive implications for Bitcoin’s stability.

By panicking less and holding during downturns, short-term investors could contribute to a less volatile market and potentially pave the way for price increases.

Source: Glassnode

The interplay between LTH and STH behavior can determine the overall direction of the market.

If LTHs are accumulating and STHs are holding during pullbacks, it can create a bullish environment with potential for price increases. A market with a balance between LTHs and STHs tends to be more stable.

LTHs provide long-term stability by holding onto their coins, while STHs can add liquidity through their trading activity.

Read Bitcoin’s [BTC] Price Prediction 2024-25

However, an overabundance of STHs prone to panic selling can increase volatility in the future.

At press time, BTC was trading at $63,113.08 and its price had grown by 3.38% in the last 24 hours, the volume at which it had traded had also grown by 69.49% in the last few days.

Bitcoin BTC 15.11.07 13 May 2024Bitcoin BTC 15.11.07 13 May 2024

Source: Santiment

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