Bitcoin (BTC) faces potential selling pressure as the dollar value of holders’ BTC exposure falls by billions of dollars.
A new study from on-chain analytics platform CryptoQuant shows that while seasoned holders are taking risks in BTC, speculators are stepping in.
Bitcoin holders “possible to take profits”
As enthusiasm continues for BTC/USD to return to all-time highs, long-term Bitcoin Holders (LTH) are taking no risks.
CryptoQuant analyzed the net position changes of LTH entities holding a certain amount of BTC for more than 155 days and found that their BTC exposure had “declined sharply.”
“Recently, the LTH realized cap (in blue) plummeted by $6 billion (from $19 billion to $12 billion). This suggests that long-term holders are likely to take profits or close out their long positions,” contributor Amr Taha commented, adding: An explanatory chart is provided in one of the platform’s Quicktake blog posts.
The chart shows the net change in LTH realization limit (the total price the LTH coin last moved).
Meanwhile, short-term holders (STHs) are taking a markedly different approach to the market. Speculators, who hold BTC for up to 155 days, are busy increasing their stake.
“Conversely, the STH realization limit (orange) recently saw a sharp increase of $6 billion, from -$17 billion to -$11 billion, indicating that short-term holders are likely to take more risk or increase their long positions. “I pay,” Taha said. continued.
Bitcoin LTH, STH net position realization limit (screenshot). Source: CryptoQuant
BTC Price Momentum Alert
Additional research confirmed a close interaction between the realized price of all BTC (the “hottest” portion of the BTC supply) and the Bitcoin spot price, moving between a day and a week ago.
relevant: Bitcoin analysis confirms BTC price rise on Coinbase Premium Golden Cross.
The one-day to one-week realized price is $62,080 at the time of this writing, which is almost identical to spot BTC/USD.
“The variety of interactions between price and realized price in a relatively short period of time suggests that traders are paying close attention to this level,” Taha concluded.
“This rejection could mean that momentum has weakened following price attempts to stay above realized prices, potentially leading to a short-term correction.”
Bitcoin realizes the price of the coin moving 1 day to 1 week ago. Source: CryptoQuant
Cointelegraph previously reported on the recent plunge in exchange withdrawals, which became Bitcoin’s largest since November 2022 near the last bear market.
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.