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Bitcoin’s [BTC] short- and long-term holder traits reveal this about its future

3min Read

An analysis presented by IntoTheBlock indicated that retail pressure was responsible for BTC’s inability to move past $30k. However, another cohort of holders could also be the reason for BTC’s sideways action of the last few days.

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  • IntoTheBlock gives insights into Bitcoin’s short-term and long-term demand characteristics.
  • Bitcoin whales pause on their outflows but bullish volume fails to take over.

Every Bitcoin [BTC] accumulation cycle is often characterized by phases of heavy accumulation and slow phases. This is because the different market participants contribute to its performance.

Is your portfolio green? Check out the Bitcoin Profit Calculator

We tend to see traders HODLing for longer during the heavily bullish phases where they expect prices to continue rallying. Such situations are usually characterized by low sell pressure.

On the other hand, there are phases where BTC demand slows down and in such phases, we tend to see a surge in sell pressure due to profit-taking from short-term traders.

IntoTheBlock’s latest analysis gives insight into the characteristics of different market participants. According to the assessment, long-term holders have maintained healthy accumulation in the last 12 months.

One would assume that short-term holders have been selling because BTC has been struggling to stay above $30,000. IntoTheBlock’s analysis revealed that there was a surge in short-term buyers which contributed to the rally to the $30,000 level.

This means the same addresses have been contributing to short-term sell pressure.

Will Bitcoin bounce back from the current level?

The focus on short-term HODLing had a notable impact on the market, especially looking at BTC’s performance lately. This was largely because the incentive to sell and prevailing FUD may influence more sell pressure, especially from the retail market.

However, whales have the biggest impact on price and as it turns out, a significant number of whales have been selling their BTC in the last four weeks.

Bitcoin whale addresses activity

Source: Glassnode

BTC traders should note that the whale addresses recently dipped to their lowest level in the last four weeks. Addresses holding over 1,000 BTC bounced back slightly while those holding over 10,000 BTC leveled out in the last few days. This means the selling pressure swelled down and may explain why the selling pressure it experienced last week has subsided.

The whales have not demonstrated a significant sign of accumulation after the recent outflows. This could be because the market lacks another catalyst to trigger the next bullish wave. Furthermore, some of the concerns are especially related to crypto regulations.

How many are 1,10,100 BTCs worth today

BTC traded at $29,332 at press time after lateral price action for the last few days. It remains unclear whether it will have a breakout or break down from its current level.

Nevertheless, it will likely reclaim the $30,000 price level in case of another sizable breakout. A bearish outcome could lead to a retest of its short-term ascending support near or below the $28,000 price level.

Bitcoin price action

Source: TradingView


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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