Over the past month, Bitcoin’s price has been fluctuating within the $100,000 — $110,000 boundary, until recently when it broke out to reach a new all-time high. Analysts believe that this sudden surge in Bitcoin’s value could be attributed to a shift in the behavior of Bitcoin holders.
In a post published on July 12 on the X platform, on-chain analyst Boris provided insights into how the actions of Long-Term Holders (LTH) and Short-Term Holders (STH) of Bitcoin have impacted the market in recent months. His analysis was based on metrics evaluating the Accumulation versus Distribution activities of these two groups of Bitcoin holders.
The metrics used by Boris track and analyze wallet activities to ascertain whether holders are increasing or decreasing their Bitcoin holdings over time. The analysis showed that from the end of May to June, Long-Term Holders were seen to be accumulating Bitcoin, which is represented by the green graphs overshadowing the red ones.
On the contrary, during the same period, Short-Term Holders were seen distributing more than accumulating, as indicated by the predominance of red graphs over the green ones.
Boris credited the LTHs for Bitcoin’s resilience above the $100,000 support zone. He noted that despite the heavy distribution and retail selling pressure from STHs, Bitcoin maintained its value above 100K, thanks to the structural accumulation led by LTH wallets.
However, Boris reported a reversal in this dynamic recently. Long-Term Holders began distributing their Bitcoin holdings, possibly in an attempt to take profits given the cryptocurrency’s upward trajectory. Simultaneously, Short-Term Holders have started to accumulate Bitcoin, indicating a potential revival of retail interest or speculative entry amidst the current bullish rally.
According to Boris, this transition from LTH support to STH support might have triggered Bitcoin’s latest breakout, as short-term momentum is injected into the market. Looking ahead, the interplay between these holder classes could lead to more interesting price movements for Bitcoin. However, a decrease in short-term buying pressure in the absence of long-term support may lead to a retest of a lower support level. At the time of writing, Bitcoin is valued at $117,300, showing no significant movement in the past 24 hours.
