This Bitcoin Metric Often Flags Turning Points—What’s It Saying Now?

The Bitcoin short-term holder balance has historically shown significant shifts near market tops and bottoms. Sentora, an institutional DeFi solutions provider, has shared a chart showing the changes in holdings of different Bitcoin investor groups over time. The groups are divided based on holding time, with traders holding for less than a month, cruisers holding for more than a month but less than a year, and hodlers holding for over a year. The chart shows that fluctuations in short-term holder balances often signal market turning points. During major tops and bottoms, traders' balances spike as cruisers and hodlers realize profits or capitulate. However, despite Bitcoin's recent rally to new all-time highs, there haven't been any major changes in traders' supplies. This lack of shift in short-term holder balances may indicate that the current rally still has room to grow. In other news, Bitcoin has seen an increase in on-chain transaction activity, with weekly transaction volume reaching almost $700 billion last week. While this is the highest level since 2022, it's still lower than the highs of the 2021 bull run. Bitcoin's price remains stuck in sideways movement, trading around $119,000.