Bitcoin (BTC) Market Witnesses Notable Shift in Ownership as Short-Term Holders Load Up on BTC

Recent price actions appear to have triggered a notable shift in Bitcoin ownership as short-term holders load up their accumulation of BTC.

Bitcoin’s price experienced a slight recovery, reaching the $102,000 price level, indicating growing upside momentum. However, the flagship asset encountered strong resistance around the $102,000 threshold, leading to a price retracement toward key support levels.

As Bitcoin’s price continues to fluctuate, strong bullish sentiment and activity have been observed among short-term holders.

A Shift In Bitcoin Ownership

Recent price actions appear to have triggered a notable shift in Bitcoin ownership as short-term holders increase their accumulation of BTC. Alphractal, an advanced data analytics and investment platform, identified the change in ownership, suggesting growing confidence among BTC retail investors.

Data from the platform shows that long-term holders have sold a significant amount of BTC, while short-term holders step in to absorb the supply. This change typically comes when long-term holders, such as early investors or institutions, reduce their holdings, allowing short-term holders who are keen to capitalize on possible gains to buy more coins.

The massive sell-offs from long-term investors are considered a profit-taking strategy, indicating pessimism in BTC’s long-term performances among these investors. However, the huge accumulation by short-term holders reflects strong optimism about BTC’s short-term potential.

After analyzing the Bitcoin Supply Age Bands metric, Alphractal highlighted that history might be repeating itself once again as short-term sentiment grows.

As observed in past cycles, long-term participants become less interested in holding their previously acquired BTC, ultimately leading them to sell their coins. In the current cycle, these investors are beginning to offload their holdings at a large scale.

On the other hand, short-term holders have shown to be more reactive and make riskier decisions because they purchase precisely during price spikes. Should these investors continue to accumulate BTC, the development could impact market volatility and shape the asset’s next major price move.

Short-term holders may be capitalizing on recent pullbacks, but Alphractal highlights that long-term holders tend to be smarter investors. This is due to a higher possibility of growth in the long term. These investors take advantage of the rising BTC prices to sell their positions, with a lower average buy price.

BTC’s Market Still Bullish As Profitability Remain At Good Levels

Despite significant corrections, BTC’s profitability remains at positive levels. Data shared by Axel Adler Jr., a macro researcher and author, shows that Bitcoin’s average realized profit, net average realized profit, and average realized losses are valued at $911 million, $653 million, and $258 million respectively.

Considering the profitability levels, Axel Adler claims that the BTC market still remains in a bullish phase. According to the expert, the current consolidation will likely come to an end when the Net Realized Profit/Loss (USD) 7DMA inches closer to zero or goes negative. This would imply that most sellers have already left the market, which is common during the final stage of a correction, leaving only panic-driven selling.