Bitcoin Long-Term Holder Supply Decline Slows to One-Fifth, Easing Selling Pressure
Summary
- An on-chain analyst said the decline in Bitcoin long-term holder holdings has slowed sharply from 30 days earlier, signaling easing selling pressure.
- The decline narrowed from 105,900 BTC on Aug. 30 to 47,800 BTC a week ago and 21,700 BTC now, indicating the pace of the drop has slowed to about one-fifth.
- While Bitcoin rose 5.6% from $76,800 to $81,200, the long-term holder coins that moved were, on average, still at a loss, and the analyst said it will be important to watch for a return to growth in long-term holder holdings and an improvement in profit-and-loss conditions.
Forecast Trend Report by Period
An on-chain analysis shows selling pressure from Bitcoin long-term holders is easing after the pace of declines in their holdings slowed sharply over the past month. Still, the long-term holder coins that moved recently were, on average, transferred at a slight loss.
On-chain analyst Axel Adler Jr. wrote in a newsletter on Sept. 21 that long-term holder holdings were down 21,700 BTC from 30 days earlier as of Sept. 20. The decline had already narrowed from 105,900 BTC on Aug. 30 to 47,800 BTC a week ago, and then to 21,700 BTC.
Long-term holder holdings have fallen for five straight weeks, but the pace of the decline has slowed to about one-fifth of the level seen at the end of last month. Adler interpreted that as a sign that selling pressure from long-term holders is weakening.
Still, while Bitcoin rose 5.6% last week from $76,800 to $81,200, the long-term holder coins that moved were traded, on average, slightly below their purchase price. That suggests a substantial portion of the coins moved recently had been bought at higher prices.
Adler wrote that although the amount leaving long-term holders is shrinking, the coins still moving remain in loss-making territory. He said it will be important to watch whether long-term holder holdings return to growth and whether profit-and-loss conditions improve.
