Recent data from Glassnode indicates a notable decline in the ratio between long-term (LTH) and short-term investors (STH) in the Bitcoin market, suggesting the start of profit-taking.
Decline in Investor Ratio
According to the latest data published by cryptocurrency analysis firm Glassnode, there has been a sharp decline in the supply ratio between long-term investors and short-term investors in the Bitcoin market.
Market Phase Transition Signals
Additionally, the 30-day percentage change metric has shifted from the 'accumulation' phase to the 'selling' phase. This development is being interpreted as an early signal that investors are beginning to take profits.
'For long-term investors, the sudden drop in the supply ratio and the reversal of the 30-day change to distribution suggest profit-taking has begun. After months of accumulation and price appreciation, this could signal a potential trend reversal. This metric is key for monitoring market reversals,' Glassnode explained.
Expert Warnings
Meanwhile, LD Capital founder Jack Yi warned investors against excessive optimism in a social media post. Yi advocated for reducing leveraged positions during market euphoria, saying, 'Be fearful when others are frantic. Even low-rate borrowing should be reduced during peak FOMO periods. The best hunter is the one who patiently awaits new opportunities. Caution should be exercised until the expected interest rate cut in August and September becomes clear.'
Current developments in the Bitcoin market require careful analysis and caution from investors, especially in periods of uncertainty.
