Value

Bitcoin

when

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Long-term Bitcoin holders have increased their accumulation, while short-term holders have sold off their holdings.</li> 
 <li>Both short-term and long-term holders are currently at a loss, with Bitcoin losing almost 10% of its value since July.</li> 
</ul>  
<p>Short-term Bitcoin holders have changed their investment strategies in the last three months due to the coin’s price volatility. Many have chosen to sell their holdings. </p> 
<p> On the other hand, long-term holders have been accumulating more Bitcoin, showing their faith in the cryptocurrency’s long-term potential. This accumulation has helped to keep the market relatively balanced, despite the sell-offs from short-term holders. </p> 
<h2 id="bitcoin-s-value-decrease">Bitcoin’s Value Decrease</h2> 
<p>From July until now, Bitcoin has lost nearly 10% of its value. In June, Bitcoin was trading around $62,830, but since then, the price has fluctuated. The highest price reached was around $65,000, while the lowest dropped to roughly $53,800. At the time of writing, Bitcoin was trading at approximately $57,340, showing a less than 1% increase in the current session. </p> 
<p>During this time, there have been significant changes in both long-term and short-term positions. Short-term holders have generally reduced their Bitcoin exposure during periods of volatility, while long-term holders have increased their accumulation. </p> 
<h2 id="investor-behavior">Investor Behavior</h2> 
<p>There has been a stark contrast in the behavior of Bitcoin’s short- and long-term holders over the past three months. The short-term net position change chart showed a shift from positive to negative around June 1st. From then on, the negative trend increased. The last recorded data showed it at -21,000, suggesting that many short-term investors were leaving the market. </p> 
<p>In contrast, long-term investors began seeing a positive net position change starting in July. The trend has continued to grow, with the most recent record showing a net increase of over 22,000. This suggests that while short-term holders were selling off, long-term investors were actively buying and accumulating Bitcoin. </p> 
<p>This divergence in behavior correlates with Bitcoin’s price volatility during this period. Short-term holders, concerned with immediate price movements, moved to cut their losses. Meanwhile, long-term investors saw the volatility as an opportunity to accumulate Bitcoin at lower prices. </p> 
<p>Despite the increased accumulation by long-term holders, both short-term and long-term holders are currently at a loss. The 90-day Market Value to Realized Value (MVRV) ratio stood at approximately -5.80%, indicating a 5% decline in the value of their holdings. The 180-day MVRV was around -9.2%, showing a 9% decline in holdings. These negative MVRV values suggest that Bitcoin is undervalued, and historically, such MVRV levels often signal an upcoming market reversal. </p> 
<p>As these long-term holders have increased their positions during the downturn, they will likely see more gains when the market rebounds.</p>

Understanding the Battle between Long-Term and Short-Term Bitcoin Trends at $57K Value

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CoinEagle.com

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