According to GlassNode's on-chain data, the recent DIP of long-term holder supply of Bitcoin may be flashing early warning signs of potential market-leading.
In a May 14 post on X, the analytics company said LTH Supply, which includes wallets that hold Bitcoin (BTC) for at least 155 days, peaked at 1429 million BTC after rising from 1366 million BTC in mid-March. However, that figure has recently declined for the second time this month.
Meanwhile, LTH spending tracking coins moving from long-standing wallets has increased to level 0.43, where prices historically tend to be local tops.
#Bitcoin's LTH Supply rose from 13.66m$BTC in mid-March to 14.29M$BTC, but recently re-imported it for the second time in May. I chose a maximum LTH expenditure of 0.43. These inflections can escalate quickly and are often worth monitoring tops in the frontline local market. pic.twitter.com/xqn0mkiows
– GlassNode (@GlassNode) May 14, 2025
Some analysts agree that Bitcoin could be heading for a reversal. Whaling analyst Jacob King claimed that Bitcoin is forming a double top. The double top is a traditional pattern marking the end of all the important bull cycles in a May 15 post shared with X's 520,000 followers.
King argues that insider manipulation and tether influx are artificially maintained, rather than driven by natural demand. He warned that the market was about to crash and was dangerously overvalued.
Bitcoin's recent surges complete the double-top, a pattern that occurred at 100% of the major market cycle peaks. That's a clear signal: the bear market is beginning.
Retail sheep are confident that over $10,000 hovering is due to mythical institutional demand or… pic.twitter.com/1npbfouymf
– Jacob King (@jacobkinge) May 15, 2025
After a 32% drop earlier this year, Bitcoin saw a big rebound, rising from around $94,000 in early May to a peak of $105,747 on May 12th. On May 12 alone, the strategy added $1.34 billion worth of BTC, bringing its holdings to nearly 569,000 BTC.
Japan's Metaplanet also increased its stash by 1,241 BTC, bringing its total to 6,796 BTC. Meanwhile, Bitcoin Spot ETF has attracted a net inflow of $1.94 billion over the past month, according to SoSovalue data.
The broader picture remains bullish, despite the possibility of a short-term setback, especially if retail investors begin to surrender. According to Santiment, the agency currently holds around 68% of its total supply, with few indications of sales.
Recent data suggests potential short-term pullbacks in the event of weakening retail sentiment. However, as institutions still buy Bitcoin and ETFs buy around 5,000 BTC every day, Bitcoin may find support soon.
