Bitcoin’s Long-Term holder Supply decline Signals Potential Market Top
Bitcoin’s long-term holder supply has shown a recent dip, possibly hinting at a market top.According to Glassnode, teh supply of BTC held for over 155 days peaked at 14.29 million in may but has as declined. This trend, combined with increased spending from long-held wallets, could indicate a price peak.
On-chain data reveals that long-term holder (LTH) supply rose from 13.66 million in March to 14.29 million. However, it’s now falling for the second time this month. LTH spending has also risen to 0.43, a level that often precedes price drops.Analysts are watching closely as these changes can quickly escalate.
WhaleWire’s Jacob King believes Bitcoin is forming a double top, a pattern signaling the end of bull cycles. He warns of insider manipulation and Tether inflows artificially propping up the market. King predicts a crash, citing overvaluation.
Despite a 32% drop earlier this year, Bitcoin rebounded from $94,000 to $105,747. Institutions like Strategy and Japan’s Metaplanet have been buying, with Strategy adding $1.34 billion worth of BTC. Bitcoin spot ETFs have attracted $1.94 billion in net inflows. Institutions now hold 68% of the total supply, with little sign of selling. Yet, retail investors might cause a short-term pullback if they start selling. but with institutions still buying and ETFs purchasing about 5,000 BTC daily, the broader trend remains bullish. Santiment notes institutions hold 68% of the total supply. If retail investors panic, a short-term correction might occur. But with continued institutional interest, support may soon emerge, paving the way for growth after profit-taking subsides. The market’s future depends on retail sentiment. If they lose confidence, a pullback is possible.
For more insights, check Glassnode’s X post and Jacob King’s analysis.
