Bitcoin Long-Term Holders Accumulate as Investors' Optimism and Confidence Rise Rapidly

Investors’ optimism and confidence in Bitcoin are rising rapidly after the flagship asset’s latest price surge to a previous resistance level. This growing sentiment of investors is especially evident among Bitcoin long-term holders, solidifying its position as the leading digital asset for long-term investments.

Long-Term Bitcoin Holder Supply Inches Higher

As the market continues to display a bullish trend, Axel Adler Jr., an on-chain expert and author, has observed a shift in Bitcoin’s long-term holders’ behavior. The expert reported that the holders’ supply has marginally increased, reflecting renewed confidence among veteran investors despite recent market fluctuations.

This slight growth indicates that investors who have held BTC for an extended period are gradually accumulating the asset, showcasing increasing belief in BTC’s future potential. If the trend continues, as observed in previous scenarios, such developments can propel a price surge for BTC.

Adler identified the surge by closely examining the Short-term Holder Vs. Long-term Holder Supply metric. The trend often coincides with periods when the market is consolidating, which could pave the way for the next major price movement.

According to Adler, the Long-Term Holder supply displayed a minor increase in comparison to the Short-Term Holder supply after the peak sell-off at the $100,000 level. Adler highlighted that the shift suggests that BTC purchased roughly 155 days ago has now entered the LTH cohort. If this growth is sustained in the upcoming week, it can be considered that long-term holders’ sales at recent levels have concluded.

Total BTC Supply In Profit Sees Significant Growth

The surge in long-term holders’ supply comes as the total amount of Bitcoin supply in profit increases sharply. Data from Adler shows that over 90% of the overall BTC supply is currently in profit, indicating growing optimism in the crypto market.

As the market gains momentum, this growth highlights the substantial profits for long-term holders and the strength of Bitcoin’s recent price rally. Moreover, the development could spark extended bullish momentum or a potential profit-taking phase.

In the absence of a “black swan” event in the ongoing cycle, Adler noted that the market could mirror the 2017 bull cycle. Specifically, this will be defined by a bullish trend with few reversals to the metric level of 80%.

If not for China’s mining restriction, which halted the bull trend, the expert believes the 2021 cycle would have followed a similar path. Thus far, investors and traders are closely observing the trend’s impact on prices as the metric is key in determining BTC’s next trajectory.

Currently, BTC has undergone a sharp pullback after a significant rally to around $102,000, sparking community discussion on its bull run. Despite the decline, many investors are maintaining a positive sentiment, as indicated by a nearly 31% rise in its trading volume in the past day.