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Bitcoin price weakening as long-term holders take profits

Bitcoin price weakening as long-term holders take profits

GrafaGrafa2024/10/07 00:50
By:Isaac Francis

Bitcoin (CRYPTO:BTC) may face selling pressure as the value of long-term holders’ BTC exposure declines, according to new research from on-chain analytics platform CryptoQuant.

The report highlights a shift in market dynamics, with seasoned holders reducing their positions while short-term speculators become more active.

The analysis shows that long-term holders (LTHs), those holding Bitcoin for 155 days or more, have significantly reduced their BTC exposure by $6 billion, dropping from $19 billion to $12 billion.

This suggests that long-term investors are likely taking profits or closing buying positions.

"There has been a recent sharp decrease of $6 billion in the LTH realized cap, suggesting that long-term holders are likely taking profits or closing buying positions," CryptoQuant contributor Amr Taha noted.

Conversely, short-term holders (STHs), who typically hold Bitcoin for less than 155 days, have increased their exposure, showing a marked rise of $6 billion in their realised cap, from -$17 billion to -$11 billion.

This shift indicates that short-term speculators are more confident in the market’s direction, potentially taking on more risk by increasing their positions.

The report also draws attention to Bitcoin’s realised price, which refers to the average price at which all BTC last moved, particularly for coins moved between one day and one week ago.

As of now, the one-day to one-week realised price stands at $62,080, closely mirroring Bitcoin’s spot price.

Taha pointed out that "the multiple interactions between the price and the realized price in a relatively short time frame suggest that traders are paying close attention to this level."

He cautioned that these price rejections could signal weakening momentum, potentially leading to short-term corrections in BTC’s price.

At the time of reporting, the Bitcoin price was $62,864.87.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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