Bitcoin is surging, breaking past $91,000 – a level that previously stopped its climb. This renewed upward movement is attracting investors, who are snapping up more BTC.
Long-Term Investors Return
After a bearish period that saw many investors sell off, Bitcoin’s recovery is bringing them back. Data from Alphractal, an investment and on-chain data platform, shows that long-term Bitcoin holders are actively buying again. This is a very positive sign, suggesting strong belief in Bitcoin’s future. Historically, this kind of long-term investor activity often leads to significant price increases. With Bitcoin near key resistance levels, this could be the start of a major price jump.
Alphractal’s data reveals that long-term holders are accumulating more Bitcoin, increasing their share of the total supply. They now hold around 72.48% (14.39 million BTC) of all Bitcoin, while short-term holders have about 27.48% (5.46 million BTC).
While this looks great for short-term price increases, Alphractal cautions that it could also lead to downward pressure. Short-term holders are more sensitive to price changes, and their actions can influence the market significantly.
Short-Term Traders Remain Skeptical
Interestingly, short-term traders (or retail investors) are betting against Bitcoin, even as the price rises. This suggests they lack confidence in Bitcoin’s immediate future. This could lead to a “short squeeze” – a situation where those betting against Bitcoin are forced to buy, potentially pushing prices up even further. However, if long positions gain traction, we might see a short-term price peak./p>
