There are also signs of seller burnout and believer accumulation. As seen during previous market lows, BTC can find a bottom when few sellers remain and the accumulation of committed holders accelerates. This is happening with approximately 45% of long-term holder supply in losses, according to Checkonchain data, with levels associated with prior market lows. This suggests that many sellers have already exited, leaving only doomed holders, who are not only able to withstand volatility, but could also strengthen their positions. This is showing in the data as the supply of BTC held by long-term holders has reached an all-time high in recent weeks. Meanwhile, on-chain movements of longer-held BTC have declined compared to last year, easing earlier pressures.
The situation today
BTC has been in a bear market since October, battling a set of headwinds largely unrelated to Bitcoin’s underlying attributes. The question now is what happens when these headwinds turn into tailwinds. With money supply growth accelerating, confidence and momentum may soon reverse.
There are also signs of seller burnout and believer accumulation. As seen during previous market lows, BTC can find a bottom when few sellers remain and the accumulation of committed holders accelerates. This is happening with approximately 45% of long-term holder supply in losses, according to Checkonchain data, with levels associated with prior market lows. This suggests that many sellers have already exited, leaving only doomed holders, who are not only able to withstand volatility, but could also strengthen their positions. This is showing in the data as the supply of BTC held by long-term holders has reached an all-time high in recent weeks. Meanwhile, on-chain movements of longer-held BTC have declined compared to last year, easing earlier pressures.
