- BTC’s HODL level hits a 2-year high.
- Bitcoin accumulation score for 10-100 BTC and <1 BTC hits 1.0.
Over the past two weeks, Bitcoin [BTC] has struggled to keep up its uptrend. The king coin has continued to trade sideways, reaching a low of $104k and a high of $107k.
Despite these struggles, long-term holders remain convinced of Bitcoin’s potential more than ever.
Inasmuch, Bitcoin’s HODL level is at its highest level in the past two years. This signals massive accumulation, with HODLers showing strong conviction about BTC’s prospects.
Source: Checkonchain
This market conviction is further evident in Bitcoin’s Reserve Risk, which held positive and was at 0.01 at press time.
Source: Checkonchain
As a result, market dynamics and behavior has changed, especially among long-term holders. The group has once again shifted towards buying.
According to Glassnode, BTC’s large holders have started to accumulate once again, after briefly shifting towards distribution.
Source: Glassnode
Accordingly, all wallet cohorts now show varying degrees of buying, with the strongest activity in the 10–100 BTC and <1 BTC groups.
These groups are aggressively acquiring Bitcoin, with the accumulation for both groups hitting the high point of 1.0.
Amid this, long-term holders’ net position has continued to rise, hitting 847.2k BTC at the time of press, a sustained rise from 698k over the past week. This also implies that LTHs are accumulating BTC.
Source: Checkonchain
Historically, higher accumulation by mid-size and small-scale buyers results in a tightening supply. This is because of upward pressure on price movement over time.
The rising conviction in the market suggests that even when Bitcoin’s price movement may be signaling caution, there’s still future potential.
Is rising accumulation the boost that BTC needs?
Undoubtedly, a shift from distribution to accumulation from large and long-term holders is a welcome development for Bitcoin.
These market players are usually experienced, and smart money has the potential to influence BTC’s price action further.
With HODLers continuing to hold their coins and large holders buying, Bitcoin is now positioned for a potential breakout from consolidation.
However, the market has yet to experience a positive impact of this shift in HODLer behavior.
Until other market players follow suit, BTC will continue to trade sideways, as buying from large holders and LTH accumulation is currently only absorbing sell pressure from small-scale sellers in the market.
This has left the market in a period of equilibrium.
