bitcoin is moving sideways, registering monotonous price action, forcing a reduction in participation. But amid this consolidation and even fear of further losses, one analyst has shared data that suggests long-term holders are accumulating at spot rates.
Are we back in 2021? Long-Term bitcoin Holders Pile Up
In a publication in x, the analyst twitter.com/JA_Maartun/status/1789705889202532752″ target=”_blank” rel=”nofollow”>noted that this pace of reaccumulation is gaining momentum, reflecting a welcome trend that preceded the impressive 2021 bull run.
Therefore, if long-term holders, or HODLers, accumulate, the probability of btc recovering in the coming sessions is high. So far, btc has trended above $60,000, up 10% from the May 2024 lows.
For clarity, the data shared by the analyst uses unspent transaction results (UTXO) to classify long-term and short-term holders. Analyzing the age of UTXOs makes it easier to evaluate the behavior of different groups of investors.
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Typically, UTXOs older than 155 days have “diamond hands” or long-term holders. Meanwhile, those who hold btc for less than 155 days are short-term holders or are often classified as “weak” hands.
They are generally traders or speculators interested in taking advantage of price volatility, such as in the first half of the first quarter of 2024.
When long-term holders stopped distributing btc in 2021, prices rose sharply. In November 2021, the coin had reached a high of around $70,000, raising prices by almost 1,500% from the 2020 lows. It is unclear if btc is ready for another 15-fold rise from rates to counted, a move that would boost it to more than $700,000.
btc has strong support at $60,000, analyst urges patience
While chain data twitter.com/CryptoMichNL/status/1789940646205087881″ target=”_blank” rel=”nofollow”>paintings Given a bullish outlook, some analysts recommend caution. Moving on to x, one analyst notes that bitcoin has strong support around the psychological mark of $60,000. The coin could stabilize if the bulls absorb the selling pressure and reject attempts to reach lower lows.
However, if prices fall below $60,000, triggered by a news event, btc may fall to the $52,000 to $55,000 zone.
Despite the potential for short-term volatility, the analyst encourages investors to maintain a long-term perspective. Accumulating bitcoin at these levels and being patient could be a winning strategy, says the analyst.
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This preview would be especially true now that on-chain data shows long-term holders accumulating.
Before that, traders should observe the price action. The coin moves sideways and finds rejection at $66,000. Although prices are lower, the series of highs of the last day is encouraging and could stimulate demand.
Featured image of DALLE, TradingView chart
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