Cryptocurrency analytics firm Alphractal has highlighted potential concerns for Bitcoin by pointing out recent changes in the behavior of short-term wallets (STH). The company claims that short-term investors holding Bitcoin for less than 155 days are increasingly selling their BTC, and if this trend continues, it could affect BTC's price.
Alphractal's analysis focuses on the data 'Accumulation and Distribution of STH', tracking the inflow and outflow of Bitcoin from addresses held by short-term investors. Daily changes in this data indicate an increasing interest from these investors in selling their Bitcoin.
Alphractal stated: 'When analyzing the monthly change, it is clear that STH supply moves in cycles of accumulation and distribution, having a strong correlation with Bitcoin's price action.' The company noted that interest in accumulating Bitcoin has gradually decreased since December 5, which has put downward pressure on BTC.
While Alphractal warns against overreacting to the current trend, they acknowledge the emotionally driven nature of this metric. 'This does not prevent Bitcoin from appreciating again in the future, as we saw in 2021,' the statement noted. However, the company points out that current behavior indicates many investors are motivated to take profits at the current price level, which could hinder any short-term price increases.
The distribution trend among short-term holders could be cautious regarding Bitcoin's short-term outlook, especially if it accelerates. However, as Alphractal noted, this metric is not definitive and could revert back to an accumulation phase, particularly if market conditions improve or longer-term bullish factors come into play.
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