Bitcoin (BTC) Long-Term Holders Refuse to Sell in the Current BTC Price Cycle’s “Deepest Correction”

In the latest edition of its weekly newsletter, The Week Onchain, crypto analytics firm Glassnode delivered good news on Bitcoin (BTC) hodler resilience.

Bitcoin ( BTC ) long-term holders are not budging an inch from their positions despite the recent heavy losses experienced by the flagship crypto.

In its latest weekly newsletter, The Week Onchain, crypto analytics firm Glassnode highlighted the resilience of Bitcoin hodlers amidst the price downturn.

Bitcoin may be enduring its steepest drawdown of the current bull market, but its “diamond hands” show no sign of panicking.

For Glassnode, “if we look at performance indexed to the date of the Bitcoin halving, we can see that the current cycle is one of the worst performing.”

“This is despite the market breaching to a new cyclical ATH prior to the halving event in April, which was the first time this has happened,” it added.

In contrast to some well-known capitulation events in Bitcoin's recent history, Glassnode shows that long-term holders are sitting on their BTC. Even the recent visit to four-month lows of $53,500 for BTC/USD failed to shake their resolve.

“Looking at losses locked in by both Long-Term, and Short-Term Holders, we note that the loss taking events this week account for less than 36% of the total capital flows across the Bitcoin network,” the newsletter reads.

Long-term and short-term holders refer to Bitcoin wallet entities hodling a given unit of BTC for more than or less than 155 days, respectively. The latter term reflects the more speculative end of the Bitcoin investor spectrum.

The newsletter featured a chart showing the distinct absence of long-term holder participation in onchain selling at a loss during the BTC price drawdown.

“Following 18 months of up-only price action after the FTX implosion, and 3 months of apathetic sideways trading, the market has endured its deepest correction of the cycle,” it noted in its concluding remarks.

Weeks to go until a BTC price turnaround?

As reported by Cointelegraph, short-term holders and day traders are in the spotlight as profit margins turn negative.

At the $53,500 lows, Glassnode added, short-term holders held nearly 2.8 million BTC, or 14.2% of the total supply, at an unrealized loss.

Miners, too, are causing concern, with a hashrate capitulation phase underway and reminding longtime market observers of the events leading up to the bear market bottom in late 2022.

“The biggest Bitcoin drawdown since the FTX fraud and collapse to $15K has been preceded by a Hash Ribbon Capitulation signal which fired in mid-May,” Charles Edwards, founder of quantitative Bitcoin ( BTC ) and digital asset fund Capriole Investments, told his followers on July 10.

In subsequent dialogue, Edwards suggested that a buy signal could be “at least a couple of weeks away.”