After Bitcoin (BTC) Fails to Breach $50K, It Finds Strong Support At $46K

1. They might protect this level in the short term.
2. Whales from other exchanges were selling $BTC so hard

Bitcoin (BTC) Supply Transition from Long Term to Short Term Holders

As per cryptocurrency on-data analytics platform Glassnode, we are somewhere in the middle of supply transition taking place from long term to short term holders. The data from Glassnode shows that short-term holders have also been accumulating so far in 2021.

The recent accumulation by short-term holders suggests that they are critical in driving the BTC price action in a short period of time. Unlike long-term holders, “short-term holders are much more elastic to price, and therefore respond faster to changes in bitcoin’s price” states Glassnode. The on-chain data provider also notes:

“It is important to keep track of the short term supply that is in profit, as any change in price over a certain magnitude can cause a mass short term selloff. This effect becomes extreme at the later stages of the bull market, as short term holders become more and more sensitive to price movements”.

Interestingly, another data from Glassnode shows that unlike the previous Bitcoin bull cycles, miner outflows are as prominent this time. Meaning miners are willing to hold their Bitcoins at this stage.