CryptoQuant: Major reversal signs from the behavior of long term Bitcoin investors

According to the latest data from CryptoQuant, the Long-Term Holders Realized Cap (LTH Realized Cap) — a measure of the actual market capitalization of long-term investors holding Bitcoin for 155 days or more — has just recorded a significant decline for the first time since September 2024.

This is an important indicator that reflects the accumulation or distribution behavior of long-term holders. When this index rises, it indicates that investors are continuing to buy and accumulate. Conversely, a decline may signify profit-taking and asset distribution.

Long-Term Holders Realized Cap (LTH Realized Cap) | Source: CryptoQuantCryptoQuant emphasizes that this level of volatility is rare and may signal an important reversal point in the market cycle.

In addition, the Open Interest index (OI) is also recording a deep decrease of over -7%, indicating that a "leverage wipeout" (leverage wipeout) is occurring. This could be a consequence of mass liquidation of trading positions or investors actively withdrawing from the market during this volatile period.

Although it may seem negative at first glance, historical analysis shows that sharp declines in OI like this are often a "cleansing" process that helps the market re-establish a balanced state. If spot demand remains strong, the market can quickly recover — similar to what happened on March 20.

Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions*

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