Bitcoin Market Shifts as Long-Term Holders Gain Dominance Near ATH

As Bitcoin approaches its all-time high (ATH), a notable shift is occurring in its Realized Dominance metric, indicating changes in market behavior between short-term and long-term holders. The recent data shows a decrease in the short-term holder (STH) Realized Cap to about 45%, which suggests reduced activity from recent entrants, possibly indicating that new coins are being sold at a loss or transitioning into long-term holdings. Conversely, the long-term holder (LTH) Realized Cap has increased, showing strong conviction and a maturing supply with coins being moved at a profit, particularly during late-stage bull markets. This divergence signals a transfer of supply from weaker hands to more committed investors, often a precursor to bullish reversals. Despite this positive trend, some on-chain signals hint at weakening demand, with the Apparent Demand metric dropping sharply to -37,000 BTC, indicating a potential short-term pullback, possibly to levels near $75,000. Interestingly, the STH floor price is approaching the critical $100,000 mark, which could support price resilience. The current trading price of around $107,796, up 1.2%, shows some short-term strength. Overall, the market appears to be consolidating, with weaker hands exiting and stronger hands consolidating. If this pattern persists, it might establish a more resilient base for Bitcoin's price and set the stage for a new ATH, although caution is warranted due to waning demand signals.