Key Points
- Bitcoin’s market structure may be shifting, signalling the end of the re-accumulation phase.
- Blockchain analytic firm Glassnode indicates an increase in Bitcoin holders, despite some being at a loss.
Bitcoin’s market structure could be experiencing a positive shift. This change may indicate the end of the ongoing re-accumulation phase that has been noted since March.
Blockchain analytics firm Glassnode reported that the recent relief rally to $66K marked the first higher high since June. Along with this, several on-chain metrics have also reached new heights. These developments hint at a potential market structure shift.
Bitcoin’s Cycle and User Behavior
Despite a prolonged consolidation period, Bitcoin was at the same level as in past market cycles after cycle lows. It had risen over 300% from its cycle lows, suggesting that there was still potential for further growth.
A growing number of users and whales have been adopting the Bitcoin holding strategy. The Long/Short-Term Holder Supply Ratio has increased to 5.4 since May, indicating that users are holding, rather than selling, their Bitcoin.
However, as of October 1st, about 6.5% of Long-Term Holders (LTH) were at a loss. Despite this, Glassnode noted that the unrealized losses across the LTH cohort were relatively small and consistent with past re-accumulation phases.
Market Structure Shift
The recent relief rally has pushed Short-Term Holders (STH) into profits, a change from the previous few weeks. These developments collectively suggest a potential market structure shift that could extend the re-accumulation period.
However, Peter Brandt believes that a market structure shift could only occur if Bitcoin surged above $71K. At the time of writing, Bitcoin is weakly holding the psychological level of $60K after a recent sell-off.