Key Points
- Long-term holders (LTHs) of Bitcoin are showing signs of accumulation, reducing sell-side pressure.
- New triggers could drive Bitcoin’s next major price movement.
Long-term Holders Accumulating Bitcoin
Bitcoin’s on-chain metrics reveal a reduction in sell-side pressure, with long-term holders (LTHs) appearing to accumulate rather than distribute. Indicators such as Binary Coin Days Destroyed (CDD), HODL Waves, and Exchange Netflow suggest a stabilising market. However, new catalysts may be required to kickstart the next growth phase.
The Bitcoin Binary CDD, a measure of LTHs’ coin movement intensity, has recently displayed values consistently below 0.3. This implies that LTHs are not actively selling their coins, a trend typically associated with decreased sell-side pressure. Historically, low Binary CDD periods have often preceded bullish phases, as LTHs tend to retain their coins during market uncertainty.
Bitcoin Holders Prefer Accumulation
The Realized Cap HODL Waves chart from Glassnode supports this trend. The data shows that a significant portion of Bitcoin’s supply is held by LTHs, with coins aged 1–2 years and 2–3 years showing significant increases. Coins held for 1–2 years have grown steadily, suggesting that investors who bought during the 2022 bear market are holding firm. Similarly, coins held for 2–3 years have also increased, reflecting confidence among those who accumulated during the 2020-2021 bull run.
The Bitcoin Exchange Netflow metric, which monitors coin movement to and from exchanges, has shown a consistent negative trend over recent months. This means more Bitcoin is being withdrawn from exchanges than deposited, a strong indicator of accumulation.
Future Outlook for Bitcoin
While the current on-chain metrics indicate a stabilising market, Bitcoin’s price action may need new catalysts to break through key resistance levels. The recent chart analysis provides additional insights into Bitcoin’s potential trajectory. The 50-day and 200-day moving averages are at 98,599.97 and $75,750.86, respectively, suggesting a bullish crossover. This suggests that despite short-term volatility, the long-term trend remains upward.
Bitcoin’s on-chain metrics show that long-term holders hold strong and sell-side pressure is easing. While this creates a foundation for market stability, the next major price movement will likely depend on external catalysts.
