Bitcoin Long-Term Holders See First Uptick Since April Lows: What It Means

Source: CryptoNewsNet Original Title: Bitcoin Long-Term Holders See First Uptick Since April Lows: Bullish Sign? Original Link: According to on-chain data shared by Capriole Investments founder Charles Edwards, the 6-month inactive supply has recently witnessed its first uptick since April. This part of the supply covers tokens that have been dormant (not involved in any blockchain transaction) for at least six months, belonging to investors known as long-term holders (LTHs).

Statistically, the longer investors keep their coins dormant, the less likely they are to sell them in the future. The LTH cohort with its relatively long holding time represents the most resolute hands in the market. Despite their resilience, these investors participated in significant selling during recent months.

The drawdown in Bitcoin LTH supply worsened during the cryptocurrency’s crash last month, indicating that long-term holders took part in substantial distribution. Since this selloff, however, the decline in the metric appears to have paused. There has even been a small increase in the indicator recently, a potential sign of a shift in investor behavior.

It’s important to note that while drops in LTH supply correspond to current selling activity, increases work differently. An uptick in the metric isn’t a sign that members of the cohort are buying right now. Rather, it suggests accumulation occurred six months ago, and now those coins have been held long enough to mature into the group.

The trend remains a positive signal for Bitcoin, as it implies HODLing behavior could be becoming more dominant on the network. The last time such a shift occurred was around the cryptocurrency’s lows in April. What followed that LTH supply rise was BTC’s rally to new all-time highs (ATHs).

Bitcoin briefly slipped under $84,000 on Monday, but its price has since recovered to around $87,500. Whether this latest shift toward long-term holding will lead to similar bullish outcomes remains to be seen.