Short-term holders (STH):

- Short-term holders are individuals who engage in buying and selling Bitcoin over a relatively brief period, usually less than one year. This category often includes traders who participate in regular transactions to profit from short-term price fluctuations.

- These holders typically use trading strategies such as day trading, swing trading, or scalping to leverage market volatility.

Long-term holders (LTH):

- Long-term holders are skilled traders or entities that hold onto their Bitcoin for an extended period, typically over a year.

- Long-term holders usually adopt a buy-and-hold investment strategy, believing in the long-term potential of Bitcoin.

Observations :

-There has been a recent sharp decrease of $6 billion (from $19 billion to $12 billion) in the LTH realized cap (blue), suggesting that long-term holders are likely taking profits or closing buying positions.

- Conversely, the STH realized cap (orange) has seen a recent sharp increase of $6 billion, moving from -$17 billion to -$11 billion, indicating that short-term holders are likely taking on more risk or increasing their buying positions.

1d ~ 1w UTXO Age Band (purple line): This represents the realized price of Bitcoin that has been held between 1 day to 1 week.

-The realized price is an on-chain metric calculated by valuing each Bitcoin at the price when it was last moved, instead of the current price. This can act as a support or resistance level, particularly if the market price moves significantly above or below it.

Observations :

-The multiple interactions between the price and the realized price in a relatively short time frame suggest that traders are paying close attention to this level.

-These rejections could imply that momentum is weakening after these price attempts to stay above the realized price, potentially leading to short-term corrections.

Written by Amr Taha