Bitcoin Faces Critical Support Amid Long-Term Holder Selling Pressure—Analyst

Samuel Edyme

6 months ago

3 mins read

Bitcoin Faces Critical Support Amid Long-Term Holder Selling Pressure—Analyst

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The Bitcoin (BTC) market is currently experiencing significant shifts in supply dynamics, with notable activity between long-term holders (LTHs) and short-term holders (STHs).

According to the latest analysis from CryptoQuant, historically, such transitions have often indicated local market tops or even cycle peaks, depending on the overall market environment and broader economic conditions.

Presently, demand from short-term holders continues to play a critical role in supporting Bitcoin’s price stability amid ongoing market volatility.

Long-Term Holders Vs. Short-Term Buyers

The analysis made by the CryptoQuant analyst Darkfost revealed that the short-term holders, particularly those who acquired Bitcoin in recent months, are actively influencing market sentiment.

By analyzing the realized price data of various short-term acquisition periods, distinct support and resistance levels become apparent.

Supply held by long and short term holders. — Supply held by long and short-term holders. | Source: CryptoQuant

These realized price levels include $41,000 for the general average realized price, $85,000 for short-term holders overall, $99,000 for holders within one week to one month, $81,000 for one to three months, and $60,000 for three to six months.

These figures reflect key psychological and technical price points where market participants may make significant buy or sell decisions, according to Darkfost.

The analyst revealed that the Short-Term Holder Spent Output Profit Ratio (STH SOPR) currently remains neutral at 1 after declining from Bitcoin’s last rally, which pushed its price to an all-time high of $108,000. The STH SOPR serves as a key metric to evaluate short-term holders’ profit-taking behavior.

A neutral SOPR indicates that recent selling activity from short-term holders has not been significantly profitable, reducing the incentive for widespread sell-offs at current price levels.

However, this neutral stance suggests potential headwinds for an immediate bullish recovery. The decline in STH SOPR points to diminishing realized profits, which could slow down upward momentum in the short term.

Despite these challenges, short-term holders’ demand has managed to absorb much of the selling pressure from long-term holders, preventing sharp price declines. Darkfost wrote:

In conclusion, the selling pressure from LTHs has so far been fairly well absorbed by the buying pressure from STHs. However, we note that the STH SOPR is declining, which could hinder an immediate bullish recovery. In the short term, a period of consolidation or even a deeper correction might occur.

Bitcoin Market Performance And Outlook

Meanwhile, Bitcoin is currently trading at a price of $97,357 after recording a slight increase of 1.1% in the past day.

While this uptick has helped BTC regain positive momentum in recent weeks, it remains insufficient to propel the cryptocurrency back to the six-digit price mark or its all-time high above $108,000.

Bitcoin (BTC) price chart on TradingView — BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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