Bitcoin Long-Term Holders Still Holding Strong Despite Price Decline

Keshav Verma

1 year ago

3 mins read

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On-chain data shows that Bitcoin long-term holders have continued to hold strong recently despite the price of the asset taking a blow.

Bitcoin Long-Term Holders Continue To Not Show Any Significant Movements

As pointed out by an analyst in a CryptoQuant post, short-term holders have continued to apply selling pressure recently. The relevant indicator here is the “Spent Output Age Bands” (SOAB), which tells us which investor groups have been selling or moving how many coins.

The “age bands” here refer to groups divided based on how dormant any batch of coins has been. For example, the 1m-3m cohort includes all investors that have been holding their coins for at least one month and at most three months ago in a single wallet address.

If the BTC SOAB metric is applied to this specific group, then it would track the transactions on the blockchain being made by the holders belonging to this age band.

Now, here is a chart that shows the trend in the Bitcoin SOAB for all the different age bands in the market over the last couple of months:

The recent movements of the different cohorts in the BTC market | Source: CryptoQuant

As shown in the above graph, the Bitcoin SOAB has had some consistently large values for the 0-day to 1-day age bands recently. The other younger groups have also shown some noticeable values, but the more aged bands haven’t really observed any significant spikes.

The BTC market is usually divided into two main cohorts: short-term holders (STHs) and long-term holders (LTHs). The STHs include all investors that have been holding onto their coins since less than 155 days ago, while LTHs include holders that have kept their coins dormant for longer than that amount.

This means that the younger age bands just correspond to different segments of the STHs. As these groups have displayed elevated values recently, it would appear that the STHs have been actively selling the cryptocurrency during the rally.

Statistically, the longer an investor keeps their coins, the less likely they become to sell at any point. Because of this reason, movements from the more aged coins can be of more importance as they provide a window into how some of the most resolute investors in the market have been doing.

So far, these LTHs haven’t shown any significant movements since the rally started, despite the fact that the price has seen quite a decline in recent days.

One noticeable instance of an LTH band showing a spike recently has been the 6 months to 12 months group, which observed an increase because of the US government moving around seized Bitcoin.

Naturally, this case was more of an exception and not an indication of a more general trend. The LTHs not showing any large transfers can be a positive sign for the price in the long term as it shows that these diamond hands still haven’t lost their conviction in the cryptocurrency.

BTC Price

At the time of writing, Bitcoin is trading around $20,000, down 10% in the last week.

BTC has plunged over the past day or so | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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