- Long-term holders are still deep in profit, maintaining high conviction and supporting Bitcoin’s price around the $104,000 level.
- Accumulator addresses increased holdings by 50,000 BTC in 30 days, indicating steady demand and confidence among committed investors.
- OTC desk balances fell from 550,000 to 145,000 BTC, suggesting strong off-chain buying from institutions and long-term market participants
Bitcoin’s current market behavior shows that long-term holders are maintaining their strength, with demand continuing to support the bullish trend. Even with the latest price movements, the data on demand does not point to a more significant trend reversal.
Long-Term Holders Show Strong Conviction
Long-Term Holders (LTH) remain a dominant force in the market, maintaining confidence even during recent price swings. According to data shared by CryptoQuant’s @abramchart, LTHs are still deep in profit, with Net Unrealized Profit/Loss (NUPL) readings above 0.5. This level reflects that a majority of these holders are comfortably in the green.
LTHs continue to resist selling pressure, and their behavior plays a critical role in price stabilization. This group’s conviction is evident, with many holding through volatility without reducing their positions. Bitcoin trading around $104,000 has seen continued support primarily from this segment.
The overall market trend remains upward, even as some short-term movements reflect brief corrective phases. Long-term holding activity is forming the structural base for this trend, providing essential stability as temporary fluctuations arise from weaker hands.
Short-Term Holders Create Temporary Pressure
Short-Term Holders (STH) are showing a less steady stance compared to long-term participants. According to the same CryptoQuant analysis, many STHs are operating near the breakeven point or at lower profit levels. This exposes them to potential loss realization, especially during quick price dips.
As shared by Darkfost, recent selling behavior from STHs may be reactionary due to sudden corrections, causing temporary downward pressure. Many of these holders are now either cutting losses or choosing to hold underwater positions.
Despite this reactive selling, the influence of STHs on the broader trend remains temporary. Their lower conviction contrasts sharply with the stable behavior seen in LTHs. The short-term price action may fluctuate, but it has yet to disrupt the overall trend supported by strong hands.
Demand Trends Remain Broadly Positive
Bitcoin demand continues to reflect health across multiple metrics. @Darkfost pointed to the apparent demand ratio, comparing new issuance with inactive supply over one year. The ratio remains positive, showing a net accumulation of about 160,000 BTC over the past month.
Another bullish indicator is the activity of accumulator addresses—wallets that only receive BTC without selling. In the last month, these addresses added nearly 50,000 BTC. This trend shows continual accumulation and reinforces the long-term support the price has.
Off-chain demand also remains robust. Data from OTC desks reveals that the amount of BTC held has declined from 550,000 in 2021 to 145,000 today. The dwindling inventory on OTC desks points to a decrease in sell-side pressure and a growing commitment from investors with a longer time horizon.
While there may be some short-term noise in the markets, the unwavering conviction from long-term holders and the demand signals suggest that Bitcoin’s bullish narrative is still very much in play.
