Bitcoin Long-Term Holders Own Almost 80% Of Realized Cap
As explained by an analyst in a CryptoQuant , the crypto has historically tended to form bottoms around when the long-term holder share of realized cap has exceeded 80%.The “long-term holders” (LTHs) are all those Bitcoin investors who have been holding onto their coins without selling or moving since at least 155 days ago.
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Looks like the value of the metric has observed rise recently | Source:In the above graph, the quant has marked all the relevant points of trend related to the Bitcoin realized cap percentage of the LTHs. It seems like whenever the indicator’s value has crossed the 80% mark, a bottom in the price of the crypto has taken place.
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Currently, the metric’s value has been rising up in recent weeks, however, it has still not gone above the threshold just yet.Nonetheless, the indicator is nearly there. If its value continues to rise and the historical pattern holds this time as well, then Bitcoin may observe a bottom soon.
BTC Price
At the time of writing, Bitcoin’s price floats around $21k, down 30% in the last seven days. Over the past month, the crypto has lost 30% in value.
The below chart shows the trend in the price of the coin over the last five days.The value of the crypto seems to have been moving sideways over the last few days | Source:Since the crash a few days ago, Bitcoin has been mostly consolidating around the $21k mark. Currently, it’s unclear whether the decline is over, or if more is coming. If the LTH share of the realized cap is anything to go by, then BTC may first seen a bit more decline before the bottom is finally in.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com