2024-11-09 09:30:57 by NewsBTC

On-chain data shows Bitcoin could currently be following a similar pattern as in a previous cycle in terms of this indicator. Bitcoin Could Now Be Entering Phase 2 Of The Bull Run In a CryptoQuant Quicktake post, an analyst has pointed out how the recent trend in the Bitcoin long-term holder supply has been reminiscent to what was observed in the 2017 cycle. The long-term holders (LTHs) make up for one of the two main divisions of the BTC userbase done on the basis of holding time, with the other side being known as the short-term holders (STHs). The cutoff between these two cohorts is 155 days, with investors who bought inside this window being part of the STHs, while those holding since more than it falling in the LTHs. Statistically, the longer an investor holds onto their coins, the less likely they become to sell said coins at any point. Thus, the LTHs are considered to include the more resolute market participants. Below is a chart that shows the trend in the combined amount of supply held by the participants of the respective Bitcoin groups. Looks like the LTH supply has turned around to the downside in recent days | Source: CryptoQuantAs is visible in the graph, the Bitcoin LTH supply observed a sharp decline back during the rally of the first quarter of the year, suggesting that even these diamond hands couldn’t resist the temptation of profit-taking. Alongside this decrease in the LTH supply, the STH supply naturally went up, as whenever the LTHs transfer their tokens on the blockchain, they become part of the STH cohort instead. Recently, the LTH supply had reversed this drawdown from earlier in the year, but with the latest rally to the new all-time high (ATH), the metric has again switched directions. In the chart, the quant has highlighted how a similar pattern was also witnessed back during the 2017 cycle; a first phase of distribution from the LTHs was followed by accumulation, which then led to a second phase of distribution. It’s possible that the latest turnaround in the LTH supply is the start of the phase 2 distribution for the current cycle, where fresh capital flows in to take coins off the hands of the HODLers. The LTH supply isn’t the only metric that’s showing a trend that matches that of the previous cycle. As the chart shared by the analyst shows, the Bitcoin Binary CDD is also forming an interesting pattern. The trend in the BTC Binary CDD over the last few years | Source: CryptoQuantThe Binary Coin Days Destroyed (CDD) basically tells us about whether the HODLers are selling less or more than the historical average. From the graph, it’s apparent that the 152-day moving average (MA) of this metric may be showing a second breakout similar to the one that led into the 2021 bull run. BTC Price Bitcoin continues to be in ATH exploration mode as its price is trading around $75,900. The price of the coin appears to have seen a sharp rise recently | Source: BTCUSDT on TradingViewFeatured image from Dall-E, CryptoQuant.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.