Short-term holders appear bullish on Bitcoin (BTC) as the fourth quarter of 2024 begins, despite concerns that October will not start off well. We realized that in the last seven days, short holders’ capital has increased by $6 billion.
Bitcoin STH realization limit shows “rapid increase”
CryptoQuant contributor Amr Taha argued in an analyst note on October 5 that short-term holders who have held Bitcoin for less than 155 days are “likely to take on more risk or increase their buy positions.”
He said the 7-day change in the STH realization limit (an on-chain metric that values each Bitcoin based on its most recently moved price) moved from -$17 billion to -$11 billion, representing a “sharp increase” of $6 billion. pointed out that it means Bitcoin value of the cohort. The significant surge in buying activity signals more positive sentiment among STH as the cryptocurrency market transitions from the third quarter to the fourth quarter.
However, Taha also noted that while short-term holders appear to be more optimistic, the data suggests that long-term holders may take the opportunity to sell some of their holdings.
During the same seven-day period, the realization limit for long-term holders (companies that hold coins for at least 155 days) saw a “sharp decline” to $6 billion. This “suggests that long-term holders are likely to take profits or close out their long positions.” ”
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Analysts are divided on what to do next for Bitcoin.
Despite October historically being one of Bitcoin’s strongest months, analysts are divided on this month’s performance.
“Bitcoin is currently showing early signs of a near-term decline,” anonymous cryptocurrency trader Rekt Capital said in an X post on October 5.
Source: Rect Capital
However, other analysts are more optimistic about the long-term outlook for Bitcoin price.
“Many people are focused on short-term price action, but the 3-month chart is incredibly bullish,” anonymous cryptocurrency trader Mags declared in an It was pointed out that it was closed. – Time high.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.