The Hidden Patterns of Bitcoin Trading: Insights from Glassnode

The latest analysis by Glassnode shows that Bitcoin (BTC) has been trading sideways since reaching an all-time high of $73,794 in March. By early May, demand dynamics turned negative, suggesting a possible bearish trend. Short-term Bitcoin holders (STH) saw significant capital outflow.

Long-term holders (LTH) or "Diamond Hands" account for 4%-8% of daily trading but capture 30%-40% of bull market profits, underscoring wealth concentration in older coins.

Current market structure, with spot prices below cost, has historically reduced investor confidence. Since mid-June, the spot price has fallen below cost for holders from 1 week to 3 months ($66.4K-$68.5K). If this persists, deeper corrections and longer recovery times are possible.

LTHs increasingly sell during bull market euphoria, showing a stable profit-taking pattern. Short-term holders fare worse than long-term holders, often entering altcoins early or before pumps, aiming for quick gains.

This tactic rarely works for Bitcoin or altcoins. A balanced strategy is holding assets for 1-3 months, taking profits during growth, and buying after declines.

Glassnode's report doesn't mention HODLers, who hold over 70% of Bitcoin issuance for years and are always in profit. Choose a strategy based on real statistics. If you dislike HODLing, learn to sell during euphoria, not when prices drop.