#bitcoin Recently, the Bitcoin price has been staying stable but the on-chain data is showing a new big trend. Notably, long-term holders are aggressively increasing their positions as they have added over 303K BTC in the last 30 days. On the other hand, short-term holders have dumped over 290K during that same period.
▪︎A Massive Transfer of Supply:
According to CryptoQuant data, long-term BTC holders have increased their holdings by over 303K in the last month. Not only that, but institutional investors are also stocking up on it. For instance, Strategy added over 53K BTC during that period. In fact, it made its biggest BTC purchase of 34,164 BTC at one point. This accumulation phase shows that long-term holders and institutional investors are showing strong conviction in the potential growth of Bitcoin.
On the other hand, CryptoQuant also pointed out that short-term holders are moving the other way. Data shows that STH supply has dropped by around 290K BTC. In other words, short-term traders are exiting positions or moving their coins.
These near 1:1 movements also show that Bitcoin is leaving the short-term market and entering the long-term market. As a result, more investors now look at BTC as a store-of-value with long-term potential instead of just a quick trade. This change is important for the growth and stability of BTC as well as the entire market as a whole.
▪︎Bitcoin Shows Steady Price Growth;
The price of BTC has been growing steadily as the accumulation is ongoing. CoinMarketCap shows that the BTC price increased from $75,000 to over $78,000 in the past seven days. This is the first time in 11 weeks that Bitcoin has managed to reach this level and was triggered by Donald Trump’s extension of the Iran ceasefire.
The next big test for the price of BTC sits in the $85,000-$90,000 zone. If that zone gets broken through, Bitcoin could jump to the $100,000 value again. On the downside, the first support levels become the 100-day MA near $76,000 and the 200-day MA near $75,000.
▪︎Technical Analysis Paints a Mixed Picture;
Amid all this movement, the technical analysis for BTC shows some conflicting signals. For example, Investing.com data shows that the MACD (12,26) indicator now has a value of 175 which is in the buy zone. This suggests that the fast 12-day EMA is higher than the slow 26-day EMA and that there is strong upward momentum. Also, this momentum is confirmed by the 14-day ADX indicator having a value of 35 which suggests the uptrend has been established.
On the other hand, the 13-day bull/bear power indicator is in the red zone and sits at -111. This signals that the bull’s dominance is weakening and the bear pressure is pushing the price of BTC below its 13-day average. In addition, the ROC indicator displays -1 suggesting BTC is losing its upside momentum and is likely headed lower. Keep in mind that divergences like this during accumulation phases are not uncommon.
▪︎The Bigger Impact;
Adding more than 300,000 BTC to long-term holders in only 30 days is a huge event for Bitcoin. It demonstrates that BTC is gaining more appreciation among holders with long-term visions. Not only that, the entire market becomes more structurally tighter as long-term holders continue to accumulate and short-term holders decline.
As a result, cryptos may become driven by more long-term demand instead of speculation only. This creates conditions that can support stronger price pumps if demand rises.
#BitcoinLongTerm