Why BTC short-term holders owning 23% BTC may act in favor of the king coin

ambcrypto.com:

The current market situation remains primarily determined by Bitcoin [BTC] short-term holders. These holders were “jostling for the best entry price, and what little profit is available to take.” But now the situation might be a different one. Positive narratives may soon be emerging from the largest coin as it shows a will to survive after all.

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Here’s AMBCrypto’s Price Prediction for Bitcoin for 2022-23

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Over the years, there was a conflict between theshort-term and long-term BTC holders. Repercussions of which were felt by loyal HODLers given the price corrections. But despite the latter’s conviction, short-term selling pressure marked new highs, thereby, erasing all the hard-earned gains.

However, now looking at HODL wave, Bitcoin unspent transaction outputs (UTXOs) by when they last moved on-chain narrated a different scenario.

Short-term holders (under 6 months) were at a multi-year low and owned just 23% of the Bitcoin supply as of 31  August. This could be seen in the graph below as highlighted by Messari.

Source: Messari

Over the last seven years, Bitcoin’s short-term holders bottomed six times, with the following year always yielding positive returns. Messari’s report added,

“The number of short-term holders has historically been a leading indicator of bitcoin price peaks. As bitcoin starts making new highs, it gets into the news cycle and attracts more buyers.”

To support this, consider BTC’s Market Value to Realized Value (MVRV) ratio. Upon looking at the MVRV, another opportunity could be up for grabs as the value fell below the key level of 1.