---

Glassnode

data

has
revealed
that

Bitcoin
long-term
holders

are
taking
advantage
of
the
cryptocurrency’s
lower
price
to
significantly
increase
their
holdings.
This
accumulation
further
strengthens
the
belief
that
this
group
of
Bitcoin
investors
anticipate
a

potential
upside

for
Bitcoin
despite
its
recent
volatility. 

Long-Term
Holders
Pay
$4.3
Billion
For
70,000
BTC

According
to

Glassnode,
long-term
Bitcoin
holders
who
had
previously

sold

1
billion
BTC
in
the
latter
part
of
2023
are
accumulating
once
again.
This
buying
activity
could
be
interpreted
as
a
potential
bullish
signal
for
Bitcoin. 

Related
Reading

Traditionally,
Bitcoin
long-term
holders

sell
their
holdings

during
peak
prices
and
buy
new
tokens
during
periods
of
correction
or
substantial
declines.
When
these
seasoned
investors
buy
cryptocurrencies
during
market
lows,
it
usually
indicates
their
expectations
of
a
potential
rebound,

leading
to
profits. 

On
the
other
hand,

short-term
holders

are
known
to
buy
cryptocurrencies
during
sporadic
price
surges,
often
signaling
that
a
cryptocurrency
is
nearing
its
peak. 

With
Bitcoin
presently
stabilizing
above
$61,000,
long-term
Bitcoin
holders
probably
see
the
cryptocurrency’s
value
as
a

prime
buying
opportunity.
They
have
recently
added
a
staggering
70,000
BTC
valued
at
over
$4.3
billion
to
their
holdings.  

This
sentiment
for
Bitcoin’s
potential
rally
is
also
shared
by
a
few
crypto
analysts
who
have

predicted

that
the
cryptocurrency
would
surge
to
new
all-time
highs
during
the

approaching
bull
market.
Earlier
in
March,
before
Bitcoin’s
halving
event,
the
cryptocurrency
skyrocketed
above
$73,000,
marking
a
new
historic
all-time
high. 

With
the
bull
market
still
on
the
way,
Bitcoin
could

see
further
upsides

as
market
conditions
improve
and
investor
demand
rises.
This
could
potentially
lead
to
profits
for
long
term
holders
who
had
purchased
the
cryptocurrency
earlier. 

Moreover,
the
upcoming

United
States
inflation
report,
set
for
release
on
May
15,
could
also
be
another
primary
factor
driving
long-term
investors’
substantial
BTC
accumulation.
With
the
US
Consumer
Price
Index
(CPI)
remaining
historically

high,
and
the

Federal
Reserve
(FED)

unchanged
rates,
Bitcoin
is
seen
as
a
possible
hedge
against
inflationary
pressures,
protecting
investors’
wealth
against
decline.  

Bitcoin
Whales
Display
Opposite
Trend

Reports
from
blockchain
analytics
platform
Santiment
reveal
that
Bitcoin
whales
are
showing
an
opposite
trend
from
long-term
holders. 

The
analytics
platform

noted

that
Bitcoin
whales
appear
to
be
taking
a
break
from
accumulating
BTC,
as
the
number
of
large-scale
transactions
has
been
decreasing
significantly. 

Related
Reading

This
trend
coincides
with
the
cryptocurrency’s
reduced

on-chain
activities

and
its

declining
value

over
the
past
few
weeks.

Crypto
analyst
Ali
Martinez
has
also
shared
a
similar
report,
emphasizing
that
Bitcoin’s
accumulation
trend
score
is
currently
displaying
a
value
closer
to
zero,
indicating
that
larger
investors
were
distributing
their
holdings
rather
than
buying. 

Despite
the
downtrend,
Martinez
has

disclosed

that
Bitcoin’s
current
TD
sequential
is
signaling
a

buying
opportunity

and
the
cryptocurrency
was
poised
for
a

rebound
soon.
At
the
time
of
writing,
the
cryptocurrency’s
price
is
trading
below
$62,000,
receiving
a
decrease
of
about
6.38%
in
the
last
month,
according
to
CoinMarketCap. 

Featured
image
from
StormGain,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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