caueconomy
Long-term holders have not yet started distribution
In the advanced stages of the Bitcoin bull cycle, the distribution of coins by long-term holders, defined as investors who hold their coins for more than 155 days, has a direct influence on price formation in the market. Commonly, these distributions are absorbed by short-term investors, who tend to make purchases close to market peaks. The profit distribution phase by long-term holders (LTH) often marks market peaks and indicates a high risk for short- and medium-term investments. However, we have not yet seen entry into this late stage of the cycle, although sporadic corrections are common, in part due to the highly leveraged nature of the current market.