Key Points
- Bitcoin’s slight pullback doesn’t deter long-term holders’ bullish outlook for the year ahead.
- Long-term holders continue to accumulate Bitcoin strategically, contributing to a mature market and bullish outlook.
Bitcoin experienced a minor decline of 0.66% in the last 24 hours.
Despite this, the cryptocurrency’s long-term holders remain optimistic about the year ahead.
Bitcoin’s Uptrend and Holder Behavior
Over the past two weeks, Bitcoin has maintained an uptrend, reaching a new high of $109k four days ago.
Even with minor pullbacks, the cryptocurrency’s uptrend remains intact.
This consistent momentum can be attributed to the behavior of long-term holders.
Long-Term Holders Influence
CryptoQuant reports that Bitcoin is currently in a battle between diamond hands and speculative FOMO.
Long-term holders continue to accumulate Bitcoin when the price drops and strategically take profits when the price surges.
This behavior supports a bullish long-term outlook by limiting market selling pressure.
Short-term holders show increased activity during price rallies, indicating speculative interest and FOMO-driven entries.
However, significant distribution during price drops signifies weaker hands exiting the market, contributing to short-term volatility.
With long-term holders owning a significant share of the supply, Bitcoin’s market appears to have matured.
The decreasing influence of short-term holders on supply could enhance market stability, though their speculative behavior could still drive short-term price fluctuations.
Bitcoin’s Market Indicators
Bitcoin’s fund flow ratio has increased over the past week, suggesting more capital may be flowing into Bitcoin than leaving.
This could be interpreted as a sign of accumulation behavior.
Bitcoin’s SOPR declined, indicating that with Bitcoin trading sideways, holders are reluctant to sell, leading to supply scarcity and potential price appreciation.
The rising stock-to-flow ratio confirms this scarcity, suggesting that more investors are keeping their assets off exchanges.
With long-term holders strategically positioning themselves, the market is mature enough for a potential upside.
This positive perception from long-term holders is crucial in absorbing selling pressure.
If the market conditions hold, Bitcoin may reclaim $107k and aim for $110k. However, a sustained correction could lead to a drop to $102,770.