Bitcoin Holders Show Confidence Amid Market Volatility
The Most Important Points at a Glance
Bitcoin investors with a long-term strategy are holding onto their assets despite high volatility. In contrast, short-term investors are experiencing losses and selling more frequently. These opposing market movements could influence Bitcoin’s future price development.
Long-Term Bitcoin Holders Remain Resilient
Data from CryptoQuant shows that long-term Bitcoin investors (Long-Term Holders, LTHs) are not selling their holdings. The Inactive Supply Shift Index (ISSI) indicates that there is no significant selling pressure from this group. Historically, such behavior often signals an upcoming price increase.
When LTHs hold their assets, it demonstrates market confidence. Conversely, they tend to sell during high-price phases, often signaling market peaks. The current reluctance of LTHs to sell could indicate that they are speculating on a future upward movement.
Short-Term Investors Under Selling Pressure
While LTHs are holding their positions, short-term Bitcoin investors (Short-Term Holders, STHs) are under pressure. The realized price for this group is around $92,000 USD. Since March 6, many STHs have been in a loss position.
During uncertain market phases, weaker hands tend to sell their holdings, often leading to short-term price fluctuations. The current market dynamics clearly show a distinction between long-term and short-term investors.
Market Data and Possible Price Development
According to CryptoQuant, there is currently no strong selling pressure from LTHs. Additionally, an analysis by AMBCrypto shows that overall selling activity has decreased. The Fund Flow Ratio – an indicator of capital movements in and out of exchanges – has dropped from 0.12 to 0.05. This suggests that fewer Bitcoins are being offered for sale on trading platforms.
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Another key indicator is the Stock-to-Flow Ratio (SFR), which has declined from 43,000 to 42,000. A decreasing supply with stable or increasing demand could support the price in the long run.
Outlook: Consolidation or Breakout?
The current market situation suggests a period of consolidation. While STHs are selling, LTHs are absorbing the supply. If this balance holds, Bitcoin could continue fluctuating between $82,000 and $87,000 USD.
A breakout above this range could push BTC towards $92,000 USD – the price level at which STHs could break even. Whether this happens depends on further market movements.
Our Assessment
The behavior of LTHs demonstrates confidence in Bitcoin’s long-term development. As long as they do not sell, the supply remains limited, which can have a stabilizing effect on the price in the long term. However, in the short term, sales from STHs could cause volatility.
For investors, this means: Those seeking short-term gains must expect fluctuations. Long-term investors, on the other hand, could benefit from a potential future price increase.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
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| Further practical applications | |
| Price | $86,520.00 |
| 24h % | -0.81 % |
| 7d % | 3.91 % |
| 30d % | -10.37 % |
| 60d % | -17.64 % |
| 1y % | 29.31 % |
| Market Cap | $1,717,180,304,734.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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