Crypto is like riding a bike. To keep your balance, you have to keep moving. - Albert Einstein

The cryptocurrency market is entering a very interesting phase: as the next Bitcoin (BTC) halving, which is expected to take place in April 2024, approaches, market participants are making various assumptions about the asset's price dynamics. However, if history is anything to go by, a mature bull market won't begin until next year.
According to the latest data, the halving has already been completed by 85%. At the same time, the volume of supply held by long-term holders (Long Term Holders, LTH) is close to its historical maximum. In previous cycles, this signaled the nearness of a macro-bottom, followed by the early phase of a bull market.
The volume of BTC in the hands of long-term holders is approaching an all-time high
The indicator of BTC supply in the hands of long-term holders is historically a good indicator of the state of the cryptocurrency market. As a rule, it is negatively correlated with the long-term price dynamics of the largest digital assets.
Long-term holders keep coins even during prolonged bear markets. Moreover, the largest increase in supply in the hands of LTH occurs during large-scale downturns. This cohort believes that the cryptocurrency market will grow again in the future and their investment will prove profitable.
During a bull market reversal, the exact opposite happens. The sharp rise in the price of Bitcoin makes long-term owners increasingly eager to sell assets at a profit. Historically, during every major bull market, we see a sharp reduction in LTH supply. The coins they sold go into the hands of Short Term Holders (STH), who join the rally at a late stage, driven by the desire to make a quick profit.
Renowned cryptoanalyst @therationalroot has published a chart of Bitcoin supply concentrated in the hands of long-term holders with the BTC halving superimposed on it. From it, it becomes clear that the indicator is currently close to the ATH in the region of 76%, established at the end of 2015.

#MyFirstSquarePost Hello Binance Square!