The Bitcoin correction phase set a four-month low at $76,600 on March 11th. Despite this decline, long-term holders continue to hold large quantities of BTC, suggesting “dynamic movements in a unique market moving forward.”
“Long-term holder activity remains largely restrained, with sell-side pressures significantly diminishing,” GlassNode said in its March 18 market report.
Long-term holders show signs of bullishness
The Bitcoin recovery comes as sales pressures for long-term holders (LTHS) who have held Bitcoin for at least 155 days began to fade.
The binary spending metric, a metric used to determine whether LTHS holds a significant proportion in a sustained manner, shows a slowdown (see chart below) while LTH supply has also begun to recover after a few months of decline.
“This suggests there is a greater will to be willing to spend coins within this cohort,” Glassnode added:
“This probably represents a change in emotions, and long-term holder behavior moves away from the sell-side distribution.”
Bitcoin: LTH Expense Binary Indicator. Source: GlassNode
The top of the bloom market often marks strong profits between intense sell-side pressure and LTH. This shows a complete shift towards bearish behavior.
But despite the Bitcoin drawdown over the past few weeks, this investor cohort continues to hold a large portion of its profits, especially during this later stage of the cycle, GlassNode said.
This may suggest that long-term holders may still be hoping for an increase in BTC prices later this year.
“This interesting observation could indicate a dynamic advancement in a more unique market.”
Bitcoin: Cumulative LTH has made profits come true. Source: GlassNode
New Bitcoin Dilla accumulation rebuilds the market
According to the encrypted data, the new Bitcoin Zilla, which holds the average age of average age of each coin, holds at least 1,000 btc.
This demonstrates a strong belief in the long-term outlook for Bitcoin among new large investors.
These wallets have collectively acquired over 1 million BTC since November 2024, and “established themselves as one of the most influential market participants,” said an independent analyst at Cryptoquant in an analysis on March 7.
The chart below shows that its pace has been significantly accelerated over the last few weeks.
“This sustained influx highlights changing market dynamics and suggests an increase in institutional or wealthy participation.”
A supply of Bitcoin held by new whales. Source: Cryptoquant
Meanwhile, several crypto executives have told Cointelegraph that Bitcoin’s recent price drop has been a “normal fix” and that the market is still waiting for a new story and a cycle top.
But not everyone agrees. For example, Ki Young Ju, founder and CEO of Cryptoquant, said Bitcoin Bull Cycle has ended. He added:
“I’m hoping for six to 12 months of bearish or sideways price action.”
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
