- Longtime Bitcoin holders (SLA 1+ years supply) reached an all-time high of 71% in November 2023, but recently began selling to realize profits as prices rose past $46,000.
- The decline in longtime holders’ supply from its peak suggests Bitcoin’s price could continue rising upwards if this trend persists, according to analysts.
- Expert James Van Straten believes the declining SLA 1+ years supply hints at further upside potential for Bitcoin’s price based on historical market patterns.
Recent data indicates that Bitcoin’s price may continue climbing upwards in the near future. As longtime Bitcoin holders begin cashing out, the market trends hint at further increases ahead.
Bitcoin Holders Cashing Out
According to Glassnode data, the percentage of Bitcoin’s supply held by investors who have kept their Bitcoin for over one year (known as the Supply Last Active or SLA 1+ years) reached an all-time high of around 71% in November 2023. These long-term holders tend to buy Bitcoin during bear markets when prices are low, holding it until the bull market sends prices rising. Then they start selling to realize profits on their low-cost purchases.
As Bitcoin entered a bull cycle and rose past $46,000 recently, the SLA 1+ years supply decreased by over 1% from its peak, dipping to 69.2%. As CryptoSlate noted in December 2023, this trend – confirmed by Dan Pantera – suggests that if the SLA 1+ years supply keeps falling, Bitcoin’s price could continue rising. The ongoing decline in longtime holders’ supply is a trend worth monitoring, as it may forecast further gains.
James Van Straten, Lead Analyst at CryptoSlate, is an avid observer of crypto market data and trends. As a tech and liberty enthusiast, he believes Bitcoin is one of the most important inventions of the 21st century. James thinks the declining SLA 1+ years supply hints at potential for additional upside in Bitcoin’s price.
In summary, the data reveals Bitcoin longtime holders cashing out profits during this bull cycle. This trend has historically indicated further price rises lie ahead. The coming months will tell whether this pattern continues, but the markets are expressing optimism for Bitcoin’s future.