Bitcoin Holds Above $92K: Long-Term Holders Lock In, New Supply Absorbed
The Bitcoin (BTC) market experienced a significant bullish surge last week, with prices jumping over 10%. This positive trend is accompanied by noteworthy investor behavior, suggesting robust demand that could fuel continued price growth.
BTC Supply Shift: Long-Term Holders Increase
Recent on-chain data, as highlighted by crypto analyst Axel Adler Jr. on X, reveals a significant decrease in the short-term holder (STH) supply. Over 16 days (April 4-21), 359,000 BTC (valued at $33.84 billion) transitioned from STH to long-term holder (LTH) status. This wasn't due to selling pressure, but rather coin maturation, indicating strong confidence in Bitcoin's long-term prospects.
This positive market signal underscores growing market demand and provides a solid foundation for potential future price rallies. The continued confidence of long-term holders is a crucial factor for sustained growth.
New Buyers Enter Above $92K
In a further positive development, Adler Jr. noted a 70,000 BTC increase in the STH supply ($6.59 billion) over the past two days, following the recent price rally. This increase stemmed from profit-taking and redistribution by LTHs, with new buyers readily absorbing this newly available supply. This absorption is crucial as it signifies robust market demand.
Bitcoin’s resilience above $92,200 (the STH cost basis) further validates this strong demand, with new buyers actively entering the market at these levels. This sustained price action signals strong market confidence.
The combination of substantial coin maturation, healthy redistribution, and Bitcoin's price staying above the STH cost basis points to a structurally sound market. With long-term holders exhibiting confidence and new buyers absorbing supply, Bitcoin appears well-positioned for further upward movement in the near to mid-term.
Bitcoin Price Update
At the time of writing, Bitcoin is trading at $94,408, showing a slight 0.78% decline in the last day. While daily trading volume is down 55.53%, suggesting reduced market participation, the price maintains its uptrend after breaking through the major resistance level at $91,000.
Further supporting the bullish sentiment is the recent revival in ETF inflows, totaling approximately $3.06 billion over the past week. The next resistance level is $96,000; breaking through this could trigger a rise towards $100,000. However, price rejection could lead to a pullback to around $92,000.
Disclaimer: This information is for educational purposes only and is not financial advice. Conduct your own thorough research before making any investment decisions.
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