Long-term holders of bitcoin (BTC) have resumed accumulation — CryptoQuant

The crypto market is gradually recovering after the recent downturn. On-chain data shows that long-term and short-term Bitcoin holders BTCUSD behave differently.

Long-term holders (LTH) have resumed net accumulation of BTC — for the first time since the last local peak. Meanwhile, short-term holders of Bitcoin (STH) are leaving the market.

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Long-term holders are accumulating again, while short-term holders are capitulating

In a new report, an anonymous analyst from CryptoQuant under the nickname IT Tech noted that there is a clear behavioral difference between LTH and STH of Bitcoin. This indicates the beginning of a re-accumulation phase.

This is based on the assessment of the change in the net position of long-term holders. According to the analyst, it has turned positive for the first time since the last local peak of BTC.

"This indicates that experienced participants are gradually returning to accumulation after several months of distribution. Their activity often reflects strategic, conscious cycle repositioning, rather than necessarily large flows of capital," noted the analyst.

Meanwhile, STH — those who have held Bitcoin for less than 155 days — are selling on weakness. Their net outflows consistently remain in the negative zone. This trend indicates capitulation. New investors are reducing their participation in the coin in response to its recent price issues.

IT Tech noted that this behavior "usually signals the early stages of the re-accumulation phase."

"If LTH continue to increase their positions while STH supplies are being depleted, this could lay the groundwork for future price growth, even if the dynamics remain unstable in the short term," he writes.

The momentum is growing, buyer pressure is increasing

On the daily chart, the positive Chaikin Money Flow indicator (CMF) reflects growing demand from investors. This supports the likelihood of a bullish breakout, as mentioned by the analyst.

This metric measures the cash flow movements into and out of the asset. Positive values indicate that buyers are investing capital to support price growth. At the time of writing, the indicator stands at 0.10, indicating that buying pressure exceeds selling.

Moreover, the Aroon Up line of the coin is currently at 100%, which confirms the strength of the current upward trend.

The Aroon indicator helps to determine the strength and direction of a trend by analyzing how much time has passed since the highest and lowest prices were reached over a certain period. It includes two lines: Aroon Up, showing bullish momentum, and Aroon Down, reflecting bearish pressure.

When the Aroon Up line reaches 100, as it is now with BTC, it indicates a strong upward momentum and a dominant bullish trend. Accordingly, the price may continue to rise.

BTC bulls aim for new highs

BTC is confidently trading above the key support level of $91,851. If bullish pressure persists and demand increases sharply, bitcoin may continue to rise and reach $95,971.

However, if traders start taking profits, the bullish forecast may not come true. In that case, the BTC price risks testing the support level at $91,851. If it does not hold, the price may drop to $87,730.

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