Bitcoin’s [BTC] holder data suggests the market may be moving into a new phase. Over three weeks, whale holdings fell by 0.20%, while retail wallets added 0.09%.
Although the difference is still relatively low, AMBCrypto observed that larger holders were decreasing their aggression as smaller investors took on more of the available supply. Meanwhile, Bitcoin is still trading between $76,000 and $80,000.
As such, this implies that retail demand has not yet triggered strong FOMO.
This indicates that long-term holders are beginning to sell some of their coins. However, they are not selling them aggressively.
As such, if LTH SOPR increases and holdings of BTC remain high, it is possible that Bitcoin will not reach its final price peak. Instead, it is merely entering the early stages of a greater increase in price.
Bitcoin’s recovery gains a stronger base
The trend by short-term holders is consistent with the overall market sentiment as well. For instance, over the past month short-term holders (STH) have remained profitable, along with long-term holders (LTH), who have also returned to profit-taking.
More importantly, both cohorts now hold profitable positions. In turn, this reduces the risk of widespread selling at a loss. At this point, STHs have generated close to $168 billion in profits and lost slightly less than $100 billion.
Taken together, these signals suggest the market can absorb profit-taking without falling back into broad losses. Therefore, if both cohorts continue to be profitable and Bitcoin stays above $80K, the current recovery could develop into a sustained uptrend.
Bitcoin’s recovery faces another hurdle
The improving holder structure is now facing a clear test on the shorter-term price action. BTC broke sharply higher from $63,000 on the 19th of August, reaching $78,000 before entering a wider consolidation.
Since then, price has repeatedly failed near $80,000, with the latest rejection pushing BTC from nearly $79,500 back to $77,392. The $75,500 area has provided steady support throughout this range, keeping the broader recovery intact.
However, RSI has slipped to 46.68 as of writing, showing that momentum has cooled after the latest rejection. BTC needs to reclaim $80,000 and break the $82,000 ceiling to restart the upside move.
Losing $75,500, on the other hand, could potentially harm the upswing, as the focus will then be towards the lower supports.
Final Summary
- Bitcoin’s holder activity remains supportive as whales trim while retail absorbs supply.
- Bitcoin needs to recover to $80,000 to break higher, with $75,500 protecting the recovery.
