On-chain data indicates that the portion of the Bitcoin total cap owned by long-term investors has climbed to approximately 80 percent at now.
An analyst said in a CryptoQuant article that the cryptocurrency has traditionally formed bottoms when the long-term holder portion of the market cap exceeds 80 percent.
The “long-term holders” (LTHs) are all Bitcoin investors who have held their coins for at least 155 days without selling or transferring them.
The realised cap is a method for calculating the capitalization of a cryptocurrency in which the value of each circulating coin is determined by the price at which it was last traded or sold, rather than the current BTC price.
Now, the key on-chain statistic is “realised cap – UTXO age bands (percent),” which shows us what proportion of the overall realised cap of the coin is contributed by the different groups on the Bitcoin market.
The different age bands indicate the length of time investors within a group have held their coins. As stated before, LTHs consist of all cohorts holding since at least 155 days prior. Here is a graphic depicting the evolution of these investors’ contributions to Bitcoin’s market cap throughout the course of its existence:
In the above graph, the quant has noted all significant trend points pertaining to the Bitcoin realised cap % of LTHs.
It seems that anytime the indicator’s value has exceeded 80 percent, the price of the cryptocurrency has reached its lowest point.
The value of the measure has been increasing over the last several weeks, but it has not yet surpassed the barrier.
However, the indication is almost there. Bitcoin may experience a bottom in the near future if its value continues to grow and if its historical trend remains true.
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