Bitcoin Short-Term Holder Supply Hits Overheated Levels, Signaling Macro Bottom Has Passed

Bitcoin's short-term holder supply has climbed to levels similar to those seen in the early stages of past bull markets, suggesting the cryptocurrency may already have formed a macro bottom.

On-chain analyst Killa wrote on X on October 12 that in previous cycles, short-term holder, or STH, supply reached overheated levels after Bitcoin moved off its macro bottom. The same pattern is now appearing in the current cycle, he said.

An increase in short-term holder supply means more investors have recently bought Bitcoin. Killa said that signals fresh buying is entering the market after the bottom.

He called it another sign that the bottom is already in place. In 2023, after short-term holder supply reached a similar level, Bitcoin continued to climb while maintaining a long-term uptrend.

Killa added that the current market is showing a similar pattern and that investors should not be swayed by the Fear & Greed Index. Even if market sentiment remains weak, the medium- to long-term price uptrend can continue, he said.