Bitcoin long-term holders, even if the price goes backwards, the amount held increases | coindesk JAPAN

Long-term Bitcoin (BTC) holders continue to increase their holdings, despite a slight “premium” where futures are more expensive. Meanwhile, CoinDesk’s Bitcoin Trend Indicator (BTI) shows that Bitcoin is in the middle of a strong uptrend.

The percentage of long-term holders in the bitcoin supply, measured in 30-day units, has been on an upward trend since March 31. Long-term holding refers to coins that have been held for more than 155 days.

These investors tend to be less likely to spend coins they hold for longer, so the rise in the share of long-term holders reflects a dormant supply that has not moved, reflecting bullish sentiment. Thing.

The rise in the share of long-term holders even as the price of Bitcoin has flattened out over the same period presents an opportunity for bitcoin holders to gain more gains in response to the recent price slump. It shows that you are getting it. Year-to-date, Bitcoin price is up 68%.

The increase also comes at a time when Bitcoin’s Network Transaction Value (NVT), calculated by dividing Bitcoin’s market capitalization by trading volume, is 6% higher than its year-to-date average of 53.7.

Compared to the price-to-earnings ratio, which is used as an indicator of relative value in the stock market, a higher value of this NVT indicates that Bitcoin is overbought, and a lower value indicates that Bitcoin is oversold. indicates that there is In this case, being close to the average means that the market is at a bit of a “premium”, but is relatively balanced at the moment.

CoinDesk’s Bitcoin Trend Indicator (BTI), meanwhile, points to the potential for further price increases.

Developed by CoinDesk subsidiary CoinDesk Indices, BTI provides daily signals of the direction and strength of Bitcoin price trends.

BTI analyzes the length of timing when the moving average bullish crossover and bearish crossover signals switch, and sends a daily trend with 5 evaluations from “strong downtrend” to “strong uptrend”. ing. This BTI shows that Bitcoin is in a strong uptrend.

Short-term traders will note that BTI’s signal, which had once returned to ‘neutral’, changed to an uptrend on April 28. Bitcoin price has fallen by 5% since the signal was issued.

On a year-by-year basis, the first uptrend signal for 2023 occurred on January 13, and since that date, Bitcoin price has risen by 40%.

｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
| Image: Glassnode
｜Original: Long-Term Bitcoin Holders Add to Their Holdings, Even as Prices Retrace