Blockchain analytics firm Glassnode noted how Bitcoin only saw a relatively thin band pattern during the recent consolidation range.
Bitcoin STH CBD shows that the rally remains thin
In a new post on X, Glassnode talked about the latest trend in Bitcoin core distribution (CBD) short-term holders. Here, CBD refers to an indicator that tells us about the amount of supply at different price levels visited by BTC in its history.
CBD short-term holders (STHs) track this specifically for securities purchased within the last 155 days. The short-term framework means that the supply clusters in the indicator will always thin out over time, regardless of whether the coins are transferred from them to other price levels (thereby regaining their original value there) or entering the long-term cohort (LTH), outside the 155-day period.
Now, here’s a chart shared by Glassnode that shows how Bitcoin STH CBD has changed over the past year:
As shown in the chart above, Bitcoin STH CBD has formed a large supply cluster at its lowest prices in November, indicating that a significant amount of fresh accumulation occurred in response to the market crash.
This dense supply area then acted as a cushion for the asset, helping stabilize it during the consolidation phase. However, in the end, the cryptocurrency’s downward momentum returned and its price fell deeply below the cluster. This means that all the characters in that part are submerged.
In addition to the strong supply zone at the bottom of the range, the November-January consolidation phase also led to higher levels being filled. This rally was not as strong as the lows, but it still showed that coins were actively changing hands.
Recently, Bitcoin settled into another phase of sideways movement, but it is clear from the chart that this time there was neither a strong buy-dip reaction nor a significant supply cluster increase as the consolidation continues.
Purchases were said to be completely non-existent and some supplies found a cost base within the region. “The accumulation cluster is forming in the range of $62k to $72k,” Glassnode noted. “However, its intensity is modest compared to the previous stages, which preceded the sustained expansion.”
It remains to be seen how the supply chain will develop in the near future. According to the analyst firm, for now, the basis it suggests for a medium-term breakout remains thin.
BTC price
At the time of writing, Bitcoin is trading around $71,100, up nearly 5% over the past week.
