Data: Bitcoin Long-Term Holder Supply Has Stagnated Since October High

Keshav Verma

1 year ago

3 mins read

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Data shows the Bitcoin long-term holder supply has mostly moved sideways since the high in October of last year.

Bitcoin Long-Term Holder Supply Has Stagnated As Sell-Side Balances Buy-Side

As per the latest weekly report from Glassnode, the BTC long-term holder accumulation seems to have stopped following the October high.

The “long-term holder” (or LTH in short) supply is the part of the total Bitcoin supply that hasn’t observed any movements since at least 155 days ago.

When the value of this indicator goes up, it means more coins are maturing beyond the threshold. Sustained such trend can be a sign of accumulation from investors, and can prove to be bullish for the crypto’s value.

On the other hand, a downtrend in the metric implies LTHs are selling their coins (thus resetting their age to zero days). Dumping from these holders is usually a bearish sign for the price of Bitcoin.

Now, here is a chart that shows the trend in the BTC long-term holder supply over the past few years:

Looks like the value of the indicator has stagnated recently | Source: Glassnode's The Week Onchain - Week 12, 2022

As you can see in the above graph, the Bitcoin long-term holder supply hasn’t shown much movement since the high in October.

The indicator seems to have followed a similar pattern over the past few years. Both in 2019 and 2021, the LTHs sold their coins and kicked off the respective bull rallies of the periods.

And after the rallies started winding off, these holders started accumulating Bitcoin. At present, the holders have stopped the trend of hodling that started back in April 2021, but they also haven’t sold off.

The sideways movement suggests the coins maturing into the LTH range are being balanced off by selling from these holders.

It now remains to be seen whether Bitcoin long-term holders will up the selling in the near future, or if they will return back into a trend of accumulation until the next bull rally.

BTC Price

At the time of writing, Bitcoin’s price floats around $42.9k, up 10% in the last seven days. Over the past thirty days, the crypto has gained 15% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price looks to have observed a sharp surge over the past twenty-four hours | Source: BTCUSD on TradingView

Bitcoin had held above the $40k mark over the last few days, and today the coin spiked above the $43k level, before retracing back to the current levels.

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.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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