Bitcoin (BTC) has shown significant fluctuations in dominant indicators, revealing a shift in market sentiment.

As the price of Bitcoin (BTC) continues to approach historical highs (ATH), its Realized Dominance is showing significant changes, revealing a shift in the behavior of short-term holders (STH) and long-term holders (LTH).

STH market value decreased, LTH proportion increased.

According to the latest analysis by CryptoQuant analyst Crazzyblockk, Bitcoin on-chain data shows:

• The market cap share of STH has dropped to about 45%. This indicates that the activity of new buyers entering the market has weakened, and the BTC flowing into the market is either sold at a loss or is being converted into long-term holdings, short-term speculative pressure has eased.
• On the contrary, the market cap share of LTH is rising. This usually occurs in the late stage of a bull market, indicating that profits from long-term held tokens are being transferred, which also reflects the “maturation” of holdings — that is, STH tokens are moving into the LTH category, the confidence of holders is increasing.

The change in position structure may be a bullish signal.

Analysts point out that the decline in STH market capitalization and the rise in LTH proportion reveals a key Bitcoin holder structure change: divergence phenomenon.

“This highlights the dynamics of supply shift: new entrants struggle to profit in a flat price trend, while long-term participants are controlling an increasingly larger share of network value.”

Such Bitcoin holder structure changes usually indicate a bullish reversal. As short-term realized market value contracts, selling pressure typically decreases, paving the way for a more sustainable upward movement (provided that new demand returns).

The market is in a consolidation phase, with strong players gradually taking the lead.

Crazzyblockk concluded that the current Bitcoin market is in a consolidation phase, with “weaker hands” exiting and “stronger holders” gaining dominance. If this trend of Bitcoin holders maturing continues, it will establish a more resilient price foundation for BTC and may create conditions for a new ATH.

Short-term risk: Demand indicator turns negative.

Despite the rise in LTH dominance, some on-chain metrics still point to weakening demand, raising concerns about the short-term pullback risk (the severity could be comparable to the retracement in April 2025 that fell to around $75,000):

• Apparent Demand for Bitcoin —— An indicator measuring whether the demand from new buyers can offset the selling pressure from miners and LTH has plummeted to -37,000 BTC. This shows that buyer interest is fading.

Positive Signal: STH Support Base Price Approaching the Psychological Barrier of 100,000 USD

One key positive signal is: STH Floor Price has been steadily rising over the past few months and is currently approaching the critical $100,000 psychological barrier. Gate’s market shows that BTC is currently at $109,421.7, up 1.62% in the last 24 hours.