Analyst: Bitcoin HODLers Start Taking Profits, This Group May be Calling the Top

BlockBeats News, May 17th, On-chain data analyst Murphy posted on social media that recently the average cost of Bitcoin Long-Term Holders (LTH) has suddenly and rapidly increased, with a 7-day cost change rate reaching 9.57%. This situation occurred not only because some Short-Term Holders (STH) converted their high-cost chips to LTH, but also because some low-cost long-term chips were sold, causing an overall cost increase. Currently, the average cost of LTH is around $31,000, indicating that a significant amount of chips priced below $31,000 have been sold, leading to a rapid increase in the overall cost.

Murphy further explained that LTH holders, known as "Diamond Hands," usually rarely trade, and their selling actions are mainly based on "panic" or "hedging." In the current situation, there is no "panic," so it is possible that LTH holders may feel that the price is approaching what they perceive as the top and are starting to gradually exit (LTH's judgment may also be wrong).