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- Bitcoin recorded a slight pullback, falling 0.66% in the last 24 hours
- Cryptocurrency long-term holders are particularly bullish for the year ahead
For nearly 2 weeks, Bitcoin (BTC) has been trading in an uptrend, with the cryptocurrency climbing to a new high of $109,000 four days ago.
After hitting this level, BTC saw some small declines in the charts. In fact, at the time of writing, the cryptocurrency was trading at $104,337, having dipped somewhat in the intraday timeframe. Still, the upside is as intact as it was a few days ago.
The consistency in BTC’s momentum can be attributed to the behavior of holders, especially long-term holders.
Long-term Bitcoin holders are leading the market
According to Crypto cargoBitcoin now faces a fierce battle between Diamond Hands and Speculative Fomo.
As such, the supply dominance of long-term holders remains high, signaling a strong long-term verdict. This cohort continues to accumulate BTC when the price drops and take profits strategically when the price spikes. This well-controlled market behavior maintains a bullish long-term outlook by limiting pressure on the market.
Source: Cryptoquant
On the contrary, short-term holders have seen activity increase during price rallies, indicating speculative interest and FOMO-driven entries.
However, a significant spread every time the price drops is a sign of weaker hands exiting the market, thus contributing to short-term volatility.
Source: Cryptoquant
Since LTHS has a significant share of the supply, it seems that the Bitcoin market is now mature.
Hence, the downward impact of STH on supply may enhance market stability. Although their speculative behavior can still lead to short-term price changes.
Source: Cryptoquant
This combination positions Bitcoin for a bullish outlook in 2025. Strategic profit-taking on LTH can trigger healthy declines, offering opportunities for fresh accumulation.
What does this mean for the Bitcoin charts?
While the analysis provided above offers us a promising outlook, it is essential to check other market indicators to determine what they mean and imply.
Source: Cryptoquant
For starters, Bitcoin’s fund flow ratio has risen over the past week from 0.05 to 0.11.
Such a crack suggests that more capital may be flowing into BTC than leaving. Such a market approach can be interpreted as a sign of hoarding behavior.
Source: Cryptoquant
Additionally, Bitcoin’s SOP decreased from 1.05 to 1.01.
This seems to mean that with BTC trading sideways, holders are reluctant to sell, resulting in a supply shortage. This, in turn, leads to an increase in prices. Simply put, the market can handle potential selling pressure without a sharp drop in the charts.
Source: Santiment
This shortage can be confirmed by the increasing stock-to-flow ratio. In fact, SFR headed from 124 to 599.03. Such a jump suggests that more investors are keeping their assets off-exchange, either in private wallets or in cold storage.
In conclusion, as long-term holders are strategically positioned, the market is ripe enough for potential upside.
Therefore, this positive perception from LTHS plays a critical role in absorbing the pressure of the sale. If the market holds these conditions, Bitcoin will recover $107,000 and try to hit $110K. However, a sustained correction will mean a drop to $102,770.
