Bitcoin long-term holder supply hits 8-month lows: Bullish or bearish?

Bitcoin's (BTC) long-term holders (LTHs), defined as entities holding BTC for at least 155 days, have reduced their supply to 71.92% in December, marking the lowest level since April. This reduction, from 14.8 million BTC in July to 14.3 million BTC, suggests capitulation amid fears of deeper price drops, with a significant 1.1 million BTC supply drop noted on a 30-day rolling basis in late November. Historically, sharp declines in LTH supply often precede retail-driven phases or cycle peaks, as seen in 2017 and 2021. If the current situation mirrors the April scenario, where LTHs accumulated during a dip, the current price drop could be viewed as an opportunity for them to add holdings, potentially sparking a recovery to new all-time highs. Technically, BTC's price structure has weakened, breaking below key support levels like the 50-week moving average and validating a bear flag pattern. Analysts suggest the next crucial support zone lies between $83,800 and $80,500; failure to hold this could lead to a deeper correction toward the $68,500 target, which aligns with the 200-week MA.

(Source：Cointelegraph)