Bitcoin’s Real Rally Starts? LTH to STH Transfer Speeds Up

 Key Insights:

• Bitcoin’s LTH supply declines while STH supply rises, signaling stronger market activity ahead.
• Key support holds at $108K, while $112K breakout could push BTC toward the $120K range.
• On-chain shifts suggest Bitcoin’s next bull rally may accelerate as coins move into active circulation.

Bitcoin (BTC) was trading at $110,415 with daily volume near $42.99 billion. The price is up 2% in the last 24 hours and 0.27% over the past week. Supply shifts and chart levels suggest the market is entering a key phase.

Long-Term Holders Reducing, Short-Term Holders Rising

On-chain data from CryptoQuant shows long-term holder (LTH) supply easing lower, while short-term holder (STH) supply is rising. The green line for LTH supply has slipped, and the orange line for STH supply has climbed.

CW noted, “The $BTC LTH supply is gradually decreasing, while the STH supply is increasing. The real rally can be said to be starting cautiously.” He added, “Once the price rise begins in earnest, the transfer from LTH to STH will accelerate.”

In earlier cycles, this transfer has often lined up with the start of bull markets as coins moved into more active hands, raising liquidity and trading volume.

$108K Holds as Key Support

Bitcoin is holding around $108,000, shown as a major support level on the daily chart. If this floor fails, the next zone lies between $98,000 and $100,000.

Ito Shimotsuma commented,

 “$BTC is now at a major support level. If BTC loses this level, a correction towards $98K-$100K will most likely happen.”

On the upside, resistance stands near $112,000. A daily close above that level would suggest strength, opening the way to the $120,000 range.

Market Outlook

The steady handover from long-term to short-term holders shows market activity building. This pattern has supported rallies in past bull runs as coins circulated into higher turnover accounts.

For now, Bitcoin sits between $108,000 support and $112,000 resistance. Holding above support preserves the current structure, while a break higher could confirm the next stage of the rally.

CW summed it up: “The bull market will continue as long as the $BTC transfer continues.”