New on-chain data reveals a promising trend for Bitcoin’s market health. Over a 16-day stretch from April 4 to April 21, the supply held by short-term holders (STH) decreased by approximately 359,000 BTC, signaling a maturation of coins into long-term holdings — a traditionally positive sign for Bitcoin’s structural strength.
This transition suggests that many investors are moving from short-term speculation toward longer-term conviction. Coins aging out of short-term classifications and into the long-term holder (LTH) category often indicate reduced selling pressure, reinforcing the broader bullish thesis.
According to information, shared by CryptoQuant more recently, as Bitcoin’s price has rallied, the STH supply has ticked back up, adding around 70,000 BTC over the last two days. This uptick represents new redistribution: long-term holders are selling into fresh demand from new entrants. Importantly, the market has managed to absorb this new supply effectively without losing upward momentum.
Bitcoin’s price remains above the short-term holder cost basis, currently at around $92,200. Maintaining price levels above this metric is typically seen as a sign of market strength, suggesting that recent buyers are still in profit and less likely to capitulate.
Taken together, the dynamics of shrinking short-term holder supply followed by healthy absorption of new coins point toward a Bitcoin market that is maturing, resilient, and potentially setting up for continued strength. As long as Bitcoin holds above key realized price levels, this underlying foundation could support further upside.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-shows-strong-absorption-of-new-supply-as-short-term-holders-transition/