Bitcoin's Long-Term Holders Selling, Mid-Size Whales Exiting: What Does It Mean for the Crypto Market?
The Shift in Long-Term Holder (LTH) Behavior
Bitcoin's value is unlikely to drop below $100K in the near future, despite the recent whale dump, due to persistent demand and increasing institutional adoption.
Bitcoin's long-term holders (LTHs) are ditching their stash, and it ain't looking good for crypto bulls. Unlike their traditional playbook of buying fear and selling greed, these folks are now peddling their coins during uptrends. Legendary whales, pocketing roughly 130 BTC (~$13.5 million) since early May, are joining the party.
And it's not just a one-off deal. The number of LTHs in distribution mode is on the rise, with net outflows creeping up week after week. Not since February have we seen such a sustained wave of LTH outflow, hinting at a significant shift in long-term market sentiment.
Mid-Size Whales Joining the Exodus
CryptoQuant's charts confirm it—the mid-range whales (100-1,000 BTC) are back on the selling spree. This cohort, responsible for about $103.5k average price coins, has been shedding their assets for weeks now.
Zooming out, you'll find that Bitcoin was trading near $104.6k five months ago. With LTH supply then at 14.09 million, today's near identical price point swells to 14.28 million LTH supply. But the tides are turning.
In just under a week, roughly 20,000 BTC have left the LTH stash, signaling a mass exodus of aged coins that are either breakeven or flirting with losses.
Waiting for the Other Shoe to Drop?
Though this doesn't signal the end of days, it's worth keeping an eye on the situation. In the event of a Bitcoin price drop below six figures, sell-off pressure could intensify.
reminder: $100k handle has seen significant sell-off pressure twice on a weekly basis. Yet bears haven't been able to force a breakthrough, let alone a cascade of capitulations. That's some seriously resilient market action right there.
Institutions Step In, Bulls Hang On
Net outflows tell the tale: At around $104k, demand kicked into overdrive, scooping up nearly 10,000 BTC off the exchanges. Institutions are nonetheless backing the move, gobbling up the supply distributed by mid-size whales.
But it ain't a confirmed bottom just yet. Bitcoin's at the mercy of supply and demand dynamics, primarily aiming to maintain its grip on the coveted $100k handle.
The Bottom Line: Bears on the Hunt
As long-term supporters and mid-size whales sell off their assets, it's vital to keep tabs on the crypto market's heartbeat. Pay close attention to the flows and supply dynamics, as they'll help us predict if the bulls maintain their edge or the bears announce round two in the daily battles ahead.
[1] Bitcoin LTH Supply Surges, Concerns Over Market Top: A Deep Dive into the Datahttps://www.tnwcn.com/article/bitcoin-lth-supply-surges
[2] The Rise and Fall of Bitcoin's Long-Term Holders (LTHs): An In-Depth Analysishttps://www.morningstar.com/news/bitcoinnet/the-rise-and-fall-of-bitcoins-long-term-holders-lths
[3] Bitcoin Illiquid Supply Surpasses 14 Million Coins: What It Means for Priceshttps://www.marketwatch.com/news/story/bitcoin-illiquid-supply-surpasses-14-million-coins-what-it-means-for-prices-2021-03-01
[4] Bitcoin Supercycle: Speculation and Realityhttps://www.financemagnates.com/cryptocurrency/bitcoin/bitcoin-supercycle-speculation-and-reality/
- The long-term holders of Bitcoin are selling at an increased rate, which could indicate a shift in long-term market sentiment, potentially leading to a drop in crypto prices.
- Mid-size whales, who possess a significant amount of Bitcoin, have been selling their assets, contributing to the net outflows of Bitcoin.
- Institutions are stepping in to buy the Bitcoin distributed by mid-size whales, but the sell-off pressure could intensify if the Bitcoin price drops below six figures.
- Monitoring the flows and supply dynamics is crucial to predict whether the bulls can maintain their edge or if the bears will announce another round of selling pressure in the crypto market.
