Cryptocurrency analyst Willy Woo clarified the recent claims that Bitcoin is selling off early.
According to data shared on social media, it was suggested that long-term Bitcoin holders (LTH) have sold approximately 28,000 BTC since October 15, exceeding the purchases of new investors.
Woo noted that the data underlying these claims could be misinterpreted. According to the analyst, the definition of “long-term investor” encompasses coins that have been inactive for more than five months. Therefore, he argued that the increase in LTH supply actually indicates that purchases made five months ago have now transitioned to long-term status.
Woo explained:
The increase in long-term investor (LTH) supply is not real-time data; it is reflected with a 5-month lag. Conversely, the decrease in LTH supply indicates that the old supply was sold off immediately.
The analyst stated that small decreases in LTH supply should generally be viewed as “local profit taking” and do not necessarily imply large sales that would create panic in the market.
“There are only a few small profit-taking moves on the chart. The rest of the data, while seemingly bearish in nature, actually creates a misleading picture,” he said.
*This is not investment advice.