Bitcoin (BTC) long-term holders continued to reduce their BTC exposure as their holdings fell to the lowest levels since April.
Key takeaways:
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.
Bitcoin long-term holder supply falls to April levels
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 share of circulating Bitcoin supply held by long-term holders to 71.92%, a level last seen in April, as shown in the chart below
Related: Bitcoin sharks stack at the fastest pace in 13 years, with BTC down 30%
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.
Bitcoin long-term holder supply, %. Source: Capriole Investments
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.
Analyzing the LTH supply change, data from CryptoQuant reveals that on a rolling 30-day basis, the supply had dropped by 1.1 million BTC on Nov. 26, the second-largest on record.
As of Monday, the LTH supply had decreased by 761,000 coins over the past 30 days, suggesting that these investors are capitulating as fears of deeper price drops mount.
Bitcoin 30-day rolling LTH supply change. Source: CryptoQuant
As Cointelegraph reported, whales sold $2.78 billion in BTC over the last 30 days, keeping downside pressure firmly in place.
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