Bitcoin Speculators Repeat 2021 Exit, Dumping 21K BTC

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Bitcoin speculators (those who hold BTC for a short time) have sold off considerable amounts of coins, leading to a significant decline in exposure. 

Over the past month, these short-term holders (STHs) sold around 21,600 BTC, contributing to price fluctuations. In contrast, long-term investors are accumulating more Bitcoin, showing strong confidence.

Bitcoin Short-Term Holders Exit Amid Market Volatility

CryptoQuant shared a blog post explaining that Bitcoin’s recent price drop led short-term holders to sell. These investors, typically holding BTC for less than 155 days, have sold off more than 21,600 BTC in the last month. 

This sell-off marks a notable shift, as many speculators seek to reduce risk due to recent market volatility. IT Tech from CryptoQuant noted, “Short-term investors are selling their holdings in response to recent market volatility.”

Moreover, the 30-day net position change for STHs shows a sharp decline, making it one of the largest exits in recent history. This sell-off is comparable to similar de-risking events seen in mid-2021. 

The large number of STHs exiting the market reflects concerns about market instability. It has led many investors to sell off their assets to minimize risk.

Long-Term Holders Increase Bitcoin Holdings

While short-term holders are exiting, long-term holders have been steadily accumulating Bitcoin. CryptoQuant’s data shows that long-term holders added 22,000 BTC to their holdings over the same 30-day period.

This marks the largest accumulation of LTHs in recent years, balancing out the recent short-term selling. It could stabilize Bitcoin’s price, reducing the volatility seen from short-term sell-offs. 

As IT Tech explains, “Increased accumulation by LTH could lead to price stabilization and position the market for a potential rebound.” 

This trend shows a “clear capital flow from weak hands (STH) to strong hands (LTH), signaling a market stability,” says IT Tech.

Impact on Bitcoin’s Price and Market Sentiment

The recent short-term investor sell-off and accumulation by long-term holders may have critical implications for Bitcoin’s price. The exit of STHs could create downward pressure in the short term, but the increasing confidence among long-term investors could set the stage for a rebound.

BTC is trading at $57,300, representing an increase of over 3.5% in the past 24 hours. Its 24-hour trading volume is above $33.82 billion, which indicates a rise of 40.44% over the past few days.

This reflects a significant increase in network activity, and if the trend continues, Bitcoin could experience less volatility and possibly even a recovery soon.

The BTC/USDT’s trading chart presents positive signals for a bullish move. According to the chart, BTC is closer to breaking above the Bollinger band. 

A successful breach above this indicator will likely signal a bullish momentum. The first potential target will be $59,000, a slight increase of 2% from its current value. In addition, the Relative Strength Index is above 60, suggesting a bullish market sentiment.

Based on these indicators and LTH buying power, there could be a potential rally to $59,000. However, remember the crypto market is highly volatile, and prices can shift over time.