Crypto market set for months of accumulation: Glassnode

The “latest wave” of sellers, indicated by a recent surge in short-term Bitcoin (BTC) holdings, shows that the capitulation events have ended and the market is now ready for months of accumulation, according to a report in blockchain analytics company Glassnode.

STH increases its position by 330,000 BTC

According to the recent report “The Week On Chain”, since Terra’s disastrous collapse in May, short-term holders (STH) have increased their holdings by 330,000 BTC, indicating the direction of a market rebound.

Short-term bitcoin holders started a new trend by buying extremely cheap coins at around $20,000 during the big sell-offs that started from May to June, putting them in a “financially advantageous position.”

According to the analysis, net FX outflows since May and an outflow of around 200,000 coins from long-term holders (LTH) appear to have been the primary causes for the increase in STH supply.

All of these things point to a capitulation, and STH “stepped in during the runout and now owns parts with a significantly reduced cost base,” according to the report.

Wallets that have only held Bitcoin for 154 days or less are called STH. They reach LTH status at 155 days.

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STH 30d Job change

Since “extreme STH accumulation is usually contemporaneous with bull market head shapes”, STHs typically buy coins at or near record highs and sell them at a significantly lower price.

Constructive divergence observed

Glassnode said buyers were challenging this trend starting in May and June, which produced “constructive divergence.”

Such events, he continued, “describe a transfer of parts to new buyers who are initially categorized as STHs, but have a low cost base and are now in a favorable financial position for HODL. “.

Experts must heed condemnation to cling

Whether the new May and June STHs “have the belief to hang on” and contribute to future price increases is the next part of a market reversal that experts need to consider.

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