How Bitcoin’s Long-term Holders Support the Price Trend?

• According to Ali Martinez, the Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator shows a trend in the Hope-Greed zone.
• The commitment of long-term holders is reflected in Bitcoin’s continually increasing inactive supply. According to Glassnode data, coins held for at least one, two, and three years have consistently reached new highs.
• A significant portion of the Bitcoin supply was in the hands of diamond hands. Approximately 14.78 million or 75% of total Bitcoins were locked in wallets self-held by long-term holders (LTHs).

Data shows that long-term Bitcoin holders are exhibiting increased HODL activity and continually increasing inactive supply in 2023.

Long-Term Holders (LTHs) Staying Committed to Their Investments

In 2023, Bitcoin has received steadfast support from long-term holders (LTHs). Despite periods of price stagnation for much of the year, these diamond hands have refused to let go of their assets.

On-chain data appears to reinforce these observations at the time of writing. In fact, according to leading blockchain analyst Ali Martinez, the Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator is showing a trend in the Hope-Greed zone. This implies that the market is in a consolidation phase where profit-taking isn’t prevalent.

For those unfamiliar, NUPL evaluates the profit and loss of investors who have held their assets for at least 155 days. Values above zero indicate that LTHs are in a net profit position, and the opposite holds true. Typically, the further NUPL deviates from zero, the closer market trends are to peaks and troughs.

While NUPL is above 1, the clear message from the above situation is that HODLing sentiment is stronger, and there’s general apprehension about the future.

Historically, LTHs giving up on the NUPL chart has served as an additional confirmation for Bitcoin’s price bottom. Therefore, it can be safely assumed that the bear market could continue without a near sign of the end of the sideways range.

Increase in HODLing Activity Among Age Groups

The commitment of long-term holders is reflected in Bitcoin’s continually increasing inactive supply. According to Glassnode data, coins held for at least one, two, and three years have consistently reached new highs.

Overall, a significant portion of the Bitcoin supply was in the hands of diamond hands. Approximately 14.78 million or 75% of total Bitcoins were locked in wallets self-held by long-term holders (LTHs). In simple terms, the widening gap between LTH supply and short-term holders’ (STH) supply is noticeable in 2023.

Meanwhile, Bitcoin’s price remained stagnant over the weekend with minor fluctuations. At the time of writing, Bitcoin’s value was $27,300.

The market is awaiting triggers like possible decisions by the U.S. Securities and Exchange Commission (SEC) regarding multiple spot ETF applications in October. Until then, the market is expected to continue its sideways movement.