- Bitcoin’s realized share among short-term holders has fallen from 55% to 40% – a sign of a market shift
- Bitcoin broke above its 50-day moving average and rose to $62,700
Bitcoin’s recent downtrend has come to a somewhat halt over the past 24 hours as the price began to move higher. This sideways move led to a drop in realized Short-Term Holders (STH) shares – a sign that the market may be gearing up for a significant reaction.
Short-term holders are leaving the market
According to CryptoQuantthe realized share of Short-Term Holders (STH) in Bitcoin has fallen from 55% three months ago to approximately 40%. The analysis showed the key STH price level at $62.7k, consistent with recent months.
Realized prices at different age ranges – 1 week at $62,742, 1 month at $62,462 and 3 months at $64,029 – can act as short-term resistance levels for Bitcoin.
Source: CryptoQuant
This short-term decline in UTXO (Unspent Transaction Output) age ranges suggested that many recent buyers have exited the market.
On the contrary, long-term holders (LTH) in higher age categories continued to hold their shares. The market is hovering around $62,000, and crossing this critical level could signal a more positive shift in the market structure.
Bitcoin Bull Market Decline and Longer Term Gains
An Analysis of Bitcoin bull market downturn also revealed patterns in historical corrections, providing insight into where the current market trend fits within broader cycles.
Every bull market has seen significant corrections before reaching new highs. Previous cycles have seen sharper declines – up to 94% – while recent cycles have been less severe.
Source: Glassnode
The ongoing correction, represented by the black dip in the 2022+ cycle, highlighted that Bitcoin may still be in a correction phase after reaching its latest all-time high (ATH). However, this decline seemed relatively mild compared to previous cycles – a sign that there may be room for further corrections before Bitcoin can resume its upward momentum.
While there could be further downside risks, the milder nature of the current pullback also means that Bitcoin may be approaching a potential recovery area.
Historically, long-term holders who ride out these corrections typically benefit greatly when the market recovers in the later stages of the bull cycle.
What do the graphs say?
Bitcoin price charts indicated that although short-term holders have exited the market, the correction in this bull cycle remains mild compared to previous ones.
This means Bitcoin could see even more downside or be close to a market bottom.
Source: TradingView
During the latest trading session, Bitcoin broke above its 50-day moving average (yellow line), with the price rising by over 3%, from $60,279 to $62,518.
This could be a sign that the cryptocurrency is getting ready to build on its positive momentum and climb higher on the price charts.
– Read Bitcoin (BTC) price prediction 2024-25
Bitcoin’s market is shifting, with short-term holders retreating while long-term holders remain patient. With the price stabilizing around key levels, the potential for recovery is growing.
If Bitcoin can break above its critical resistance levels, it could signal the start of the next bullish phase.