Bitcoin’s recent price jump has sparked renewed optimism among investors, especially long-term holders. This isn’t just hype; there’s data to back it up.
Long-Term Holders Are Accumulating
On-chain analyst Axel Adler Jr. noticed something interesting: the amount of Bitcoin held by long-term holders (LTHs) is slowly increasing. This is a significant sign. It means seasoned investors are buying more Bitcoin, suggesting they believe the price will go up. This gradual accumulation, Adler explains, often precedes major price increases. He based this observation on the “Short-term Holder vs. Long-term Holder Supply” metric. The recent uptick follows a period of market consolidation, a pattern often seen before significant price movements. Specifically, he noted a small increase in LTH supply compared to short-term holders after the price peaked near $100,000. Bitcoin acquired around 155 days ago is now considered part of the LTH group. If this trend continues, it could signal the end of selling by long-term holders at current price levels.
Most Bitcoin is Now Profitable
Adding to the bullish sentiment, a huge chunk (over 90%) of all Bitcoin is currently “in profit.” This means most people who own Bitcoin would make money if they sold it now. This widespread profitability fuels optimism and could lead to further price increases or, conversely, some profit-taking.
Looking Ahead: A Repeat of 2017?
Adler suggests that if things continue as they are (without any major unexpected events), the Bitcoin market could mirror the 2017 bull run. This would involve a strong upward trend with only minor price corrections. He believes the 2021 bull run was cut short only by China’s crackdown on Bitcoin mining.
Current Market Conditions
Bitcoin recently saw a sharp pullback after reaching around $102,000, causing some uncertainty. However, trading volume increased by nearly 31% in a single day, indicating continued investor interest despite the price dip. The overall picture remains positive, with many investors maintaining a bullish outlook.
