Bitcoin experienced a corrective phase, reaching a four-month low of $76,600 on March 11. Nonetheless, long-term holders have maintained substantial BTC holdings, indicating a “unique market dynamic” for the future, according to recent research.
“The activity among Long-Term Holders remains relatively subdued, with a significant reduction in their sell-side pressure,” Glassnode noted in their market report dated March 18.
Indicators of bullishness among long-term holders
Bitcoin’s recovery aligns with a decrease in selling pressure from Long-Term Holders (LTHs)—those who have held Bitcoin for no less than 155 days.
The Binary Spending Indicator, a metric that tracks significant spending patterns by LTHs, indicates a decline (see chart below), while the supply of LTHs is starting to recover after several months of decrease.
“This trend implies a stronger inclination to hold rather than spend coins within this group,” Glassnode elaborated, adding:
“This might signify a change in sentiment, as Long-Term Holder behavior shifts away from sell-side distribution.”
Typically, bull market peaks are marked by significant sell-side pressure and profit-taking among LTHs, indicating a full transition to bearish sentiment.
Despite Bitcoin’s recent downturn, this group of investors retains a substantial portion of their gains, especially at this advanced stage of the market cycle, according to Glassnode.
This behavior could indicate that long-term holders are still anticipating further price appreciation for BTC later in the year.
“This intriguing observation may reveal a more distinct market dynamic as we move forward.”
New accumulation by Bitcoin whales alters the market landscape
New Bitcoin whales, identified as addresses holding a minimum of 1,000 BTC with an average acquisition age of fewer than six months, are actively accumulating coins, according to CryptoQuant data.
This trend reflects strong confidence in Bitcoin’s long-term prospects from these new large investors.
Since November 2024, these wallets have collectively secured over 1 million BTC, thus establishing themselves as significant players in the market, noted CryptoQuant’s independent analyst Onchained in a March 7 analysis.
The chart below illustrates that their accumulation pace has notably increased in recent weeks, having “gathered more than 200,000 BTC just this month.”
“This ongoing influx suggests a shift in market dynamics, indicating higher participation from institutional and high-net-worth investors.”
Meanwhile, various crypto executives have informed Cointelegraph that Bitcoin’s recent drop in price is a “standard correction,” suggesting the market is poised for a new narrative and a forthcoming cycle peak.
Contrarily, not all share this view. For example, CryptoQuant’s founder and CEO Ki Young Ju has suggested that the Bitcoin bull cycle has concluded, stating:
“Prepare for 6-12 months of bearish or sideways market activity.”
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research when making decisions.
