Emily Walker
Investor enthusiasm for Bitcoin is on the rise following its recent price rebound to earlier resistance levels. This renewed confidence is particularly evident among long-term holders, reinforcing Bitcoin’s status as the preferred digital asset for sustained investment.
Increase in Long-Term Bitcoin Holder Supply
Given the positive trends in the market, on-chain analyst Axel Adler Jr. has noticed a change in the behavior of Bitcoin’s long-term holders. He reported a slight uptick in the supply of these holders, suggesting a revival of faith among seasoned investors despite recent market volatility.
This gradual increase indicates that long-term investors are starting to accumulate more Bitcoin, reflecting a growing belief in the asset’s future prospects. If this trend persists, as has occurred in the past, it could lead to a significant price increase for Bitcoin.
Adler pointed out this trend based on the Short-term Holder vs. Long-term Holder Supply analysis. It often aligns with market consolidation periods, potentially setting the stage for notable price movements.
Adler observed that the Long-Term Holder supply has increased slightly compared to Short-Term Holders following the recent sell-off around the $100,000 mark. He noted that Bitcoin purchased around 155 days ago has now transitioned into the Long-Term Holder category. If this upward trend continues, it could indicate the end of recent selling activity among these holders.
Significant Growth in Total BTC Supply in Profit
This increase in long-term holders corresponds with a substantial rise in the amount of Bitcoin that is currently profiting. According to Adler’s data, more than 90% of the total Bitcoin supply is now in profit, highlighting growing optimism within the cryptocurrency market.
This upward trend emphasizes the significant gains for long-term holders and reflects the robustness of Bitcoin’s recent price surge. It may lead to sustained bullish momentum or provoke a phase of profit-taking.
Unless disrupted by an unforeseen event, Alder noted that the market could resemble the bullish cycle of 2017, characterized by a steady upward trend with minimal pullbacks to an 80% metric level.
Alder speculated that if it weren’t for China’s mining restrictions, which interrupted the bullish trend, the cycle in 2021 could have closely followed a similar pattern. Investors and traders are now closely monitoring the impact of this trend on prices, as it plays a crucial role in determining Bitcoin’s future direction.
After a notable rally approaching $102,000, Bitcoin has recently experienced a sharp decline, causing uncertainty within the community regarding its bullish trajectory. Nonetheless, many investors maintain a positive outlook, demonstrated by a nearly 31% increase in trading volume over the last day.