- There are still no signs of long-term holders’ capitulation on the NUPL chart
- LTH supply and STH supply sharply diverged in 2023
Bitcoin [BTC] has received unflinching support from long-term holders (LTH) in 2023. Despite the prices staying muted for most parts of the year, these diamond hands have refused to let go off their stashes.
How much are 1,10,100 BTCs worth today?
Seasoned investors in consolidation mode
On-chain data seemed to be echoing these observations, at press time. In fact, according to prominent blockchain analyst Ali Martinez, the Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator has been trending in the Hope-Greed region. This implies that the market has been in a consolidating state without much profit-taking.
Long-term #Bitcoin holders are standing strong and hopeful! pic.twitter.com/NnBcDt8uMK
— Ali (@ali_charts) September 18, 2023
For the uninitiated, NUPL assesses profit and loss for investors who have held their assets for at least 155 days. Values above zero suggest LTH are in a state of net profit and vice versa. Typically, the more NUPL deviates from zero, the closer the market trends towards tops and bottoms.
Even though the NUPL was over 1, the evident message from the aforementioned situation is that HODLing sentiment is greater, with a general sense of anxiety about the future.
Historically, LTH’s capitulation on the NUPL chart has been an additional confirmation of a bottom for BTC’s price. Hence, it can be safely assumed that the range-bound price may persist with no imminent end to the bear market in sight.
Age bands see rise in HODLing activity
LTH’s conviction was also reflected in the steadily rising BTC’s dormant supply. Coins held for a minimum of one year, two years, and three years continued to hike to new highs, as per data from Glassnode.
Source: Glassnode
Overall, the lion’s share of Bitcoin supply was in the hand of diamond investors. About 14.78 million or 75% of the total BTCs were locked away in LTHs’ self-custodial wallets.
Simply put, the widening divergence between LTH supply and short-term holder (STH) supply in 2023 is glaring to the eye.
Source: Glassnode
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BTC remained calm over the weekend
In the meantime, BTC’s price stayed muted over the weekend barring minor fluctuations. At the time of writing, the king coin was exchanging hands at $26,658.51, as per CoinMarketCap.
The market is waiting for triggers like possible decisions on the multiple spot ETF applications by the U.S. Securities and Exchange Commission (SEC) in October. Until then, the market’s sideways movement is expected to continue.
