š Bitcoin Long-Term Holders Remain Resilient Amid Deepest Correction of Current Price Cycle
This is despite the market reaching a new cyclical all-time high before the halving event in April, an unprecedented occurrence.
BitcoinĀ long-term holders are showing remarkable resilience amid the deepest correction of the current BTC price cycle, according to crypto analytics firm Glassnode.
In the latest edition of its weekly newsletter, The Week Onchain, Glassnode highlighted the strength of Bitcoin holders despite significant market downturns.
Bitcoin is facing its most substantial drawdown of the current bull market, yet its steadfast ādiamond handsā are not showing signs of panic.
Glassnode noted, āIf we look at performance indexed to the date of the Bitcoin halving, we can see that the current cycle is one of the worst performing.ā
This is despite the market reaching a new cyclical all-time high before the halving event in April, an unprecedented occurrence.
Unlike previous well-known capitulation events, Glassnodeās analysis reveals that long-term holders are steadfast, even with BTC/USD hitting four-month lows of $53,500.
The newsletter stated, āLooking at losses locked in by both Long-Term and Short-Term Holders, we note that the loss-taking events this week account for less than 36% of the total capital flows across the Bitcoin network.ā
Significant capitulation events in September 2019, March 2020, and May 2021 saw losses exceeding 60% of capital flows over several weeks, with contributions from both long-term and short-term holders.
Long-term holders are defined as those holding Bitcoin for more than 155 days, while short-term holders have it for less, indicating a more speculative nature.
Glassnodeās chart shows the lack of long-term holder participation in onchain selling at a loss during the BTC price drawdown.
They stated, āFollowing 18 months of up-only price action after the FTX implosion and 3 months of apathetic sideways trading, the market has endured its deepest correction of the cycle.ā
