Journalist
Posted:
- There are still no signs of capitulation from long-term holders on the NUPL chart
- The LTH offering and the STH offering differed greatly in 2023
Bitcoin [BTC] has received unflinching support from long-term holders (LTH) in 2023. Despite prices remaining low for most of the year, these diamond hands have refused to let go of their stock.
How much are 1,10,100 BTCs worth today?
Seasoned investors in consolidation mode
Data on the chain seemed to reflect these observations at the time of writing. According to prominent blockchain analyst Ali Martinez, the Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator is trending in the Hope-Greed region. This implies that the market is in a consolidating state, without making much profit.
Long-term #Bitcoin holders stand strong and hopeful! pic.twitter.com/NnBcDt8uMK
— Ali (@ali_charts) September 18, 2023
For the uninitiated, NUPL rates the profit and loss of investors who have held their assets for at least 155 days. Values above zero suggest that LTH is in a state of net profit and vice versa. Typical, the more NUPL deviates from zero, the closer the market trends are to tops and bottoms.
Even though the NUPL was above 1, the clear message from the above situation is that HODLing sentiment is higher, with a general sense of concern about the future.
Historically, the capitulation of LTH on the NUPL chart was additional confirmation of a bottom for the price of BTC. Therefore, it is safe to assume that the price can persist within the range with no impending end to the bear market in sight.
Age groups are seeing an increase in HODLing activity
LTH’s conviction was also reflected in the steadily rising supply of BTC. Coins held for at least one year, two years and three years continued to rise to new highs, according to data from Glassnode.
Source: Glassnode
Overall, the lion’s share of Bitcoin supply was in the hands of diamond investors. About 14.78 million or 75% of the total BTCs were locked in LTHs’ self-custodial wallets.
Simply put, the growing gap between LTH supply and short-term holders (STH) supply in 2023 is striking.
Source: Glassnode
Is your portfolio green? Check out the BTC profit calculator
BTC remained calm this past weekend
Meanwhile, the price of BTC remained subdued over the weekend, barring minor fluctuations. At the time of writing, the king coin was exchanging hands for $26,658.51 CoinMarketCap.
The market is awaiting triggers such as possible decisions on the multiple spot ETF filings by the US Securities and Exchange Commission (SEC) in October. Until then, the market’s sideways movement is expected to continue.