Bitcoin (BTC) price surges by 9.4% over the last seven days, with a single-day spike of 9.65%

This rally comes amid a notable shift in on-chain behavior—one that echoes patterns seen before Bitcoin's historic 2017 bull run.

Crypto analyst Axel Adler Jr has noted a significant shift in on-chain behavior that might be foreshadowing a continuation of Bitcoin's recent rally and a potential return to 2017's bull market levels.

The analysis, based on the Bitcoin Exchange Depositing Addresses Count chart, shows a steady decline in the number of Bitcoin addresses depositing BTC to exchanges. This trend, which has been ongoing since 2022, could be indicating a cooling in selling pressure. Typically, when investors move BTC to exchanges, it signals an intent to sell, so fewer deposits imply growing confidence in holding.

This significant drop in the address count has brought it to levels last seen in December 2016. At the time, Bitcoin saw a monthly gain of 29.2%, setting the stage for an astounding 1,369% price rally in 2017.

Adler believes that this pattern could be unfolding again, with the decline in exchange deposits indicating a rising HODL sentiment as investors opt to hold their coins rather than sell.

This analysis aligns with the recent surge in Bitcoin price, which has seen gains of 13.3% in the past two weeks. With fewer coins moving to exchanges and recent gains of 13.3% in the past two weeks, the Bitcoin price appears primed for further upside.

If the pattern follows that of late 2016, this could mark the early stages of a substantial bull run. As HODLing gains momentum and selling pressure wanes, Bitcoin's path to new all-time highs might be closer than it seems.