BTC Short Holders May ‘Take More Risk’ As Guaranteed Cap Drops By $6B
As Q4 2024 begins, short-term holders seem to be making a big move on Bitcoin (BTC), despite fears that October won't get off to a flying start. Over the past seven days, short holders' realized capitalization has risen by $6 billion.
Bitcoin STH will see the realized cap “in a big increase”.
Short-term holders — those who have held bitcoin for less than 155 days — “may be taking on more risk or increasing their long positions,” CryptoQuant contributor Amr Taha argued in an Oct. 5 analyst note.
He realized that the cap of the seven-day change in STH – an onchain measure based on the price of each Bitcoin last moved – moved from – $ 17 billion to – $ 11 billion, representing a “sharp increase” of $ 6 billion. Team Bitcoin Price. As the crypto market transitions from Q3 to Q4, an increase in buying activity shows more positive sentiment among STHs.
However, while short-term holders appear to be more optimistic, data suggests that long-term buyers may use the opportunity to sell some of their holdings.
During the same seven-day period, long-term holders — entities that hold coins for at least 155 days — showed a “significant decline” of $6 billion, “suggesting that long-term holders may take profits or close out long positions.” “
Related: Bitcoin is re-creating the ‘three blind mice' trading pattern: Peter Brandt
Analysts are divided on Bitcoin's next move.
Although October has historically been one of Bitcoin's strongest months, analysts are divided on how it will fare this month.
“Bitcoin is currently showing the first signs of a short-term dip,” opined anonymous crypto trader Rect Capital in an Oct. 5 X post.
Source: Rect Capital
However, other analysts are more bullish on the long-term outlook for Bitcoin's price.
“While many are focused on short-term price action, the 3-month chart looks incredibly bullish,” noted anonymous crypto trader Mags, who closed another 3-month candle above 2021. – time max.
Magazine: Anti-aging tycoon Brian Johnson is about to commit his life to crypto.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
