Bitcoin Long-term Holder Supply Hits 8-month Lows: Bullish Or Bearish?

The amount of Bitcoin in long-term holder wallets hit cyclical lows, but is it enough to help the bulls avoid a decline toward $68,000?

Bitcoin (BTC) long-term holders continued to reduce their BTC exposure as their holdings fell to the lowest levels since April.

Bitcoin long-term holders reduced their supply to 72%, the lowest since April

BTC price is at risk of a deeper correction to $68,500 if key support levels fail.

Long-term holders (LTHs), entities that have held Bitcoin for at least 155 days, reduced their holdings to 14.3 million BTC in December from 14.8 million BTC in mid-July, according to data from Glassnode.

This has reduced the percentage of supply held by these investors to 71.92%, a level last seen in April, as shown in the chart below.

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The April figures came as Bitcoin dropped from its Jan. 20 all-time high of $109,000, bottoming at $74,000. LTHs took advantage of the low prices and increased their supply to 76% in July, resulting in a 65% rally in Bitcoin’s price to its record highs of $123,000.

If a similar scenario unfolds, LTHs could see the latest BTC price drop to $84,000 as an opportunity to add to their holdings, sparking a recovery to new all-time highs over the next few months.

Zooming out, LTH supply typically sees sharp declines during the retail-driven phases and selling by LTHs that accompany cycle peaks, as seen in 2017 and 2021.

Source: CoinTelegraph