There are also signs of seller exhaustion and believer accumulation. As seen at previous market lows, BTC can find a bottom when few sellers remain and when accumulation by holders with conviction increases. This is developing with around 45% of the supply of long-term holders at a loss, according to Checkonchain data, with levels associated with previous market lows. It suggests that many of the sellers have already left, leaving only the doomed holders, who are not only able to withstand the volatility but may also be expanding their positions. This is shown in the data, as the supply of BTC held by long-term holders has reached a record level in recent weeks. Meanwhile, older BTC on-chain movements have slowed from last year, easing previous pressures.
The situation today
BTC has been in a bear market since October, battling a rotating set of headwinds that are largely unrelated to bitcoin’s underlying attributes. The question now is what happens when those headwinds become tailwinds. With money supply growth accelerating, sentiment and momentum could soon change.
There are also signs of seller exhaustion and believer accumulation. As seen at previous market lows, BTC can find a bottom when few sellers remain and when accumulation from holders with conviction increases. This is developing with around 45% of the supply of long-term holders at a loss, according to Checkonchain data, with levels associated with previous market lows. It suggests that many of the sellers have already left, leaving only the doomed holders, who are not only able to withstand the volatility but may also be expanding their positions. This is shown in the data, as the supply of BTC held by long-term holders has reached a record level in recent weeks. Meanwhile, older BTC on-chain movements have slowed from last year, easing previous pressures.
