In the last week, Bitcoin has lost about 15% of its value, decreasing from ~$88,000 to ~$74,400. But the real story lies in the behavior of capital among different groups of investors.
🔍 Key Observations
On April 7, an important event took place:
- Short-term holders (STH) suffered losses of over $10.1 billion—the largest drop in a single day.
- Long-term holders (LTH) increased their capital by $9.7 billion, indicating massive accumulation.
On April 8:
- STH losses significantly decreased (–$693 million), indicating the exhaustion of capitulation.
- LTH continued to accumulate, adding $1.13 billion to their cost basis.
🧠 Interpretation
This gap between STH and LTH is significant:
- Short-term investors are panicking and locking in losses.
- Long-term investors are buying the weakness and absorbing the supply.
This behavior often signals late stages of corrections or early phases of recovery.
📐 Implications
- STH reduce supply: lowering short-term resistance.
- LTH strengthen their positions: believe in long-term growth.
The market is likely entering a phase of reaccumulation or bottom formation.
🔍 Key Observations
On April 7, an important event took place:
- Short-term holders (STH) suffered losses of over $10.1 billion—the largest drop in a single day.
- Long-term holders (LTH) increased their capital by $9.7 billion, indicating massive accumulation.
On April 8:
- STH losses significantly decreased (–$693 million), indicating the exhaustion of capitulation.
- LTH continued to accumulate, adding $1.13 billion to their cost basis.
🧠 Interpretation
This gap between STH and LTH is significant:
- Short-term investors are panicking and locking in losses.
- Long-term investors are buying the weakness and absorbing the supply.
This behavior often signals late stages of corrections or early phases of recovery.
📐 Implications
- STH reduce supply: lowering short-term resistance.
- LTH strengthen their positions: believe in long-term growth.
The market is likely entering a phase of reaccumulation or bottom formation.