Bitcoin endured a corrective phase, reaching a four-month low of $76,600 on March 11. Despite this downturn, long-term holders persist in retaining substantial amounts of BTC, indicating a “distinct market dynamic ahead,” according to new research.
“Activity among Long-Term Holders remains largely muted, accompanied by a significant reduction in their sell-side pressure,” asserted Glassnode in its March 18 market report.
Long-term holders display signs of optimism
Bitcoin’s rebound aligns with a decrease in selling pressure from Long-Term Holders (LTHs)—wallets that have maintained Bitcoin for at least 155 days.
The Binary Spending Indicator, a tool for assessing when LTHs are expending a considerable portion of their assets consistently, is showing signs of slowing down (refer to the chart below), while the LTH supply is starting to recover after months of decline.
“This indicates a stronger inclination to hold rather than spend coins among this group,” noted Glassnode, adding:
“This potentially signifies a change in sentiment, with Long-Term Holder behavior shifting away from sell-side distribution.”
Bitcoin: LTH spending binary indicator. Source: Glassnode
Bull market peaks are often characterized by heightened sell-side pressure and substantial profit-taking among LTHs, indicating a complete transition to bearish behavior.
However, notwithstanding Bitcoin’s recent pullback, this investor group continues to retain a significant share of their gains, particularly for this later phase of the cycle, according to Glassnode.
This might imply that long-term holders are still anticipating further BTC price growth later this year.
“This intriguing observation could point to a more unique market dynamic in the future.”
Bitcoin: Cumulative LTH realized profit. Source: Glassnode
New Bitcoin whales redefine the market
New Bitcoin whales, defined as addresses holding at least 1,000 BTC with an average acquisition age under six months, are aggressively amassing BTC, according to CryptoQuant data.
This indicates a strong belief in Bitcoin’s long-term potential among these new substantial investors.
These wallets have collectively obtained over 1 million BTC since November 2024, “positioning themselves as some of the most influential market entities,” stated CryptoQuant independent analyst Onchained in a March 7 analysis.
The chart below illustrates that their acquisition pace has notably accelerated in recent weeks, “accumulating over 200,000 BTC just this month.”
“This steady inflow signifies a shift in market dynamics, implying heightened institutional or high-net-worth involvement.”
Bitcoin supply held by new whales. Source: CryptoQuant
Meanwhile, various crypto executives have conveyed to Cointelegraph that Bitcoin’s recent price decline was a “normal correction,” with the market simply awaiting a new narrative and a cycle peak yet to arrive.
However, not everyone is in agreement. For example, CryptoQuant founder and CEO Ki Young Ju stated that the Bitcoin bull cycle has concluded. He added:
“Anticipate 6-12 months of bearish or sideways price movement.”
This article does not include investment advice or recommendations. Any investment and trading decision carries risks, and readers should perform their own research before proceeding.
