{"id":1626779,"date":"2022-08-16T01:46:15","date_gmt":"2022-08-16T05:46:15","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/?post_type=station&p=1626779"},"modified":"2022-08-17T00:01:50","modified_gmt":"2022-08-17T04:01:50","slug":"expansion-of-short-term-btc-holders-suggests-final-flush-of-sellers","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/expansion-of-short-term-btc-holders-suggests-final-flush-of-sellers\/","title":{"rendered":"Expansion of short-term BTC holders suggests \u2018final flush\u2019 of sellers"},"content":{"rendered":"

A recent spike in short-term Bitcoin (BTC<\/a>) holders could signal a \u201cfinal flush\u201d of sellers, meaning the capitulation events have played out, leaving the market ready for months of accumulation. <\/p>\n

The latest \u201cThe Week On Chain\u201d report from market analysis firm Glassnode on Monday points out<\/a> that short-term holders (STHs) have expanded their holdings by 330,000 BTC since May\u2019s catastrophic Terra collapse<\/a>. As a result, they may be the canary in the coal mine signaling the path to market recovery.<\/p>\n

During the mass sell-offs starting in May through June, Short-term holders of Bitcoin<\/a> established a new trend by buying up extremely cheap coins at or below $20,000 which puts them in an \u201cadvantageous financial position.\u201d<\/p>\n

\n

After a dramatic capitulation event, the ownership structure of #Bitcoin<\/a> has been reshaped.<\/p>\n

As markets sell-off, $BTC<\/a> migrates from weaker hands, to those stepping in at the lows. Here, we explore how to track this migration of coins using age bands.https:\/\/t.co\/xBxdvALRmZ<\/a><\/p>\n

\u2014 glassnode (@glassnode) August 15, 2022<\/a><\/p><\/blockquote>\n

The report states that an outflow of about 200,000 coins from long-term holders (LTHs) and exchange net outflows since May appear to have been the main contributors to the swelling STH supply. Altogether, these events indicate that a capitulation<\/a> has occurred and that STHs \u201cstepped in during the flush out, and now own coins with a much lower cost basis.\u201d<\/p>\n

STHs are defined as wallets that have held BTC for no more than 154 days. They become LTH at 155 days.<\/p>\n

\"image\"<\/figure>\n

Typically, STHs buy coins<\/a> at or near all-time high prices and sell much lower as \u201cextreme STH accumulation is normally concurrent with bull market topping formations.\u201d However, Glassnode stated that buyers from May and June created a \u201cconstructive divergence\u201d in bucking that trend.<\/p>\n

\u201cSuch events describe a transfer of coins to new buyers whom are initially classed as STHs, but have a low cost basis, but are in an advantageous financial position to HODL from there on,\u201d it added.<\/p>\n

Related: <\/em><\/strong>Bitcoin price corrects after hitting a wall at a multi-month descending trendline<\/em><\/strong><\/a><\/p>\n

Glassnode suggests that the next aspect of a market turnaround that analysts must look at is whether the new STHs from May and June \u201chave the conviction to hold on\u201d and contribute to further price increases. <\/p>\n","protected":false},"author":1,"featured_media":1626780,"template":"","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"start":0,"end":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[],"sources":[]},"genre":[41],"station_tag":[3634,3884,14560,6428,3888,14557,4298,4150,14559,5019,3767,4158,4302,3837,3646,5992,4089,14576,7457,14558,8453,12764,9642,14556,8593,14575,7894,14555],"artist":[5815],"mood":[],"activity":[],"_links":{"self":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station\/1626779"}],"collection":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/media\/1626780"}],"wp:attachment":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/media?parent=1626779"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/genre?post=1626779"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station_tag?post=1626779"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/artist?post=1626779"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/mood?post=1626779"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/activity?post=1626779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}