{"id":70333,"date":"2025-05-30T06:30:05","date_gmt":"2025-05-30T06:30:05","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=70333"},"modified":"2025-05-30T06:30:05","modified_gmt":"2025-05-30T06:30:05","slug":"this-chart-warns-bitcoins-momentum-may-be-running-out-heres-why","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=70333","title":{"rendered":"This Chart Warns Bitcoin\u2019s Momentum May Be Running Out, Here\u2019s Why"},"content":{"rendered":"

Bitcoin is currently trading above $107,000 following a recent peak that saw the asset touch a new all-time high above $111,000. Although this marks a 3.9% drop from its highest level, the broader monthly trend remains positive, with BTC still recording a gain<\/a> of over 10% in the last 30 days.<\/p>\n

The market, however, has shifted its attention from price movement to on-chain dynamics, particularly the behavior of new and long-term holders.<\/p>\n

Bitcoin Long-Term Holders Selling, New Entrants Still Cautious<\/h2>\n

On-chain analyst Avocado Onchain, writing on CryptoQuant\u2019s QuickTake platform, examined<\/a> Unspent Transaction Output (UTXO) data to assess investor trends during this stage of the cycle.<\/p>\n

In a post titled \u201cUTXO Age Band Analysis: Sluggish Inflow of New Investors May Limit Bitcoin\u2019s Upside,\u201d he explored whether BTC\u2019s continued rally<\/a> can be sustained without fresh capital inflows from newer market participants.<\/p>\n

His findings suggest that while older coins are being sold, the inflow of newer investors remains low, a factor that has historically limited momentum in previous cycles.<\/p>\n

The UTXO age distribution reveals that a significant portion of the BTC supply remains with holders who have kept their assets for over six months. The 6\u201312 month age band has increased, suggesting a large share of market participants still fall into the mid- to long-term holding category.<\/p>\n

Historically, when the proportion of these holders<\/a> started to shrink, it often preceded major tops in Bitcoin\u2019s price cycle, driven by a transition of coins from long-term to new investors.<\/p>\n

However, despite Bitcoin reaching new highs, the percentage of UTXOs held by investors with a holding period of less than one month remains well below the historical threshold<\/a> seen near previous market tops.<\/p>\n

During earlier bull cycles, new investor participation often surged past 50%. Currently, that figure sits around 20%, even lower than the peak levels during this recent rally. Avocado Onchain warns that without a notable increase in participation from newer investors, the market may struggle to maintain upward momentum.<\/p>\n

Large Holders Accumulate as Retail Stays on Sidelines<\/h2>\n

While retail inflows appear to be lacking, large-scale accumulation is continuing in the background. A recent update<\/a> from CryptoQuant on X highlighted that Bitcoin addresses holding between 1,000 and 10,000 BTC, excluding exchanges and miners, have been steadily increasing.<\/p>\n

Large holders are accumulating.<\/p>\n

Addresses holding 1K\u201310K BTC (excl. exchanges & miners) are rising, a sign of growing investor confidence.<\/p>\n

Historically linked to higher prices. pic.twitter.com\/vCCml3GfHB<\/a><\/p>\n

\u2014 CryptoQuant.com (@cryptoquant_com) May 29, 2025<\/a><\/p>\n

These entities are often associated with institutional investors or long-term strategic holders, and their accumulation is often interpreted as a signal of growing confidence in BTC\u2019s long-term prospects.<\/p>\n

Although retail remains largely inactive, institutional behavior<\/a> may serve as a foundation for price support. The current dynamics reflect a market in a transitional phase, with potential for upside if broader participation begins to increase.<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin is currently trading above $107,000 following a recent peak that saw the asset touch a new all-time high above $111,000. Although this marks a 3.9% drop from its highest level, the broader monthly trend remains positive, with BTC still recording a gain of over 10% in the last 30 days. The market, however, has […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-70333","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/70333"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70333"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/70333\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}