Bitcoin Long-Term Holders Stay Firm as ISSI Metric Confirms No Selling Pressure
- Crypto analyst Onchained warns of misinformation in Bitcoin discussions, urging reliance on blockchain data.
- Long-term holders show no significant selling pressure, contradicting claims of Bitcoin holder capitulation.
- Glassnode and ISSI data suggest strong holding sentiment, but CryptoQuant CEO predicts bearish phase.
Misinformation continues to shape discussions in the cryptocurrency world, often fueled by excitement rather than hard evidence. Crypto analyst and CryptoQuant contributor Onchained has warned investors to be cautious.
Beware of misinformation. Despite the data, misleading narratives persist, Onchained wrote in a market report on March 22. The analyst stressed that many claims about the cryptocurrency lack proper onchain validation and are instead driven by speculative market sentiment.
Rather than following the noise, Onchained advises investors to cross-check sources and rely on blockchain metrics to gauge market movements accurately. A key example of this misinformation, he explained, is the current narrative surrounding Bitcoins long-term holders (LTH).
Bitcoin Long-Term Holders Are Not Selling
LTH behavior is a crucial indicator of Bitcoins market cycle health. Historically, when long-term holders maintain their positions, it signals strong confidence and reduced selling pressure. This often precedes major price surges. Conversely, large-scale LTH sell-offs typically indicate market tops.
Despite speculation that BTC long-term holders are capitulating, Onchained pointed out that the data tells a different story. The data leaves no room for speculation, the analyst stated.
The Inactive Supply Shift Index (ISSI), which measures whether dormant Bitcoin is being spent, shows no significant LTH selling pressure. This indicates that the smart money is not leaving the market but is instead preparing for its next phase.
Metrics Show Holding Behavior Strengthening
Crypto analytics firm Glassnode supports this observation, highlighting that long-term holders remain largely inactive, with a significant drop in sell-side pressure.
Another key metric, the Binary Spending Indicator, which tracks when long-term holders are offloading their coins, also shows a slowdown. At the same time, the total Bitcoin supply held by LTHs is recovering after months of decline.
This suggests that there is a greater willingness to hold than to spend coins among this cohort, Glassnode noted. Investors within this category likely anticipate Bitcoin to push higher in the coming months.
Despite strong holding patterns among long-term investors, some experts believe Bitcoins bull run may be over. CryptoQuant CEO Ki Young Ju recently predicted a bearish or sideways market for six to twelve months, citing on-chain metrics signaling reduced liquidity and fresh buyers exiting the market.
Related Readings | Bitcoin Analyst Sees XRP Hitting $20 Despite Calling It a Bad Idea
Read more: https://www.tronweekly.com/bitcoin-long-term-holders-stay-firm/
Text source: TronWeekly
