- Bitcoin’s long-term holder spending plummets to a two-week low.
- Long-term holders are aggressively stacking despite market volatility, reflecting high market conviction.
For the first time in two weeks, Bitcoin [BTC] has recorded significant gains for three consecutive days. BTC has surged from a local low of $98k to $106k, signaling recovering upward momentum.
Although BTC has made a significant recovery, restoring profit margins for both STHs and LTHs, long-term investors are eyeing further gains. Inasmuch as so, Bitcoin’s long-term holders have refused to sell.
Spending by Bitcoin LTHs plummets
According to Glassnode, spending by long-term holders was at a two-week low at press time.
Source: Glassnode
As Bitcoin recovered from the recent slump, LTHs’ bullish sentiment surged. This group has continued to hold its position, with supply near all-time highs of 14.7 million BTC.
The ongoing market behavior reflects continued conviction as seasoned investors remain reluctant to distribute despite recent market volatility.
Instead of selling, LTHs have continued to accumulate, as evidenced by Bitcoin’s HODLer Net Position Change.
After holding within negative for nearly two months, this metric turned positive over the last week and hit 10.33k BTC, signaling massive accumulation.
Source: Checkonchain
Historically, strong accumulation from LTH has marked ideal buy zones before major upsides.
This is because their continued stacking incentivizes other market participants to re-enter the market, which strengthens demand.
Source: Checkonchain
Likewise, Bitcoin’s RHODL Ratio was around 2.7k at press time, reflecting high long-term conviction relative to short-term speculative interest.
What this means for BTC
As expected, reduced spending and accumulation by LTHs have positively impacted BTC, causing the king coin to make a strong recovery and hit a high of $106.8k.
Bitcoin’s long-term holders’ reluctance to distribute signals strong bullish sentiment among the group. Such conditions allow BTC to record more gains, as it will face less selling pressure from LTHs in the foreseeable future.
Additionally, rising stacking from LTHs means that they are actively absorbing sell pressure from STHs and other profit takers. Therefore, if market conviction from LTHs holds, Bitcoin will make more gains.
A continued rise after the recent breakout will see BTC first reclaim $107k and then eye $109,457. However, if sentiment from LTHs reverses and starts distributing again, sell pressure will pull BTC back to $104,348.