Bitcoin Bounces Back as Short and Long Term Holders Make Strategic Moves

By: Eliza Bennet

Bitcoin Recovers Amid Strategic Holder Moves

CryptoQuant analysis shows Bitcoin (BTC) price bounced back above the $66,000 mark after a recent drop almost exerted pressure on short-term holder whales. Despite the close encounter with the scale back, the price managed to remain above the crucial level. The short-term holder whales, or entities holding greater than 1,000 BTC acquired within the past 155 days, saw an unprecedented rise in their realized price alongside this year's sharp Bitcoin rally.

Interactions between short-term holders (STHs) and long-term holders (LTHs) indicate a promising outlook for short-term Bitcoin prices, as reduced sell pressure from LTHs is observed. While LTHs have reportedly offloaded about 1 million BTC since December, STHs have persisted in accumulating, purchasing approximately 1.2 million BTC, boosting the market dynamics favorably for BTC value.

The short-term holder realized price (STH RP) is instrumental in evaluating the average cost each coin last transacted on-chain within the past 155 days. Currently threatening a critical level of Bitcoin market health, the STH RP hovers over $58.8k. Authoritative data analysis source, Glassnode, confirms that the price held firmly above $60,000 during the recent dip, potentially pushing Bitcoin's market cap comfortably above $1 trillion.

Amid the price surge from $25,000 in October 2023, LTHs - investors who possibly bought at lower prices and age past the 155 days mark - capitalized on the rising BTC values. LTHs collectively hold approximately 14 million coins, underscoring their significant influence on BTC performance and market capitalization.