By Chris Hollingworth 
Bitcoin’s recent corrective phase hit a four-month low of $76,600 on March 11, causing some concern in the market. However, new research suggests that long-term holders of BTC have remained steadfast in their positions, indicating a potentially unique market dynamic going forward. Glassnode’s March 18 report highlighted that long-term holder activity has remained subdued, with a noticeable decrease in sell-side pressure.
As Bitcoin begins to recover, there are signs of bullishness among long-term holders (LTHs), defined as wallets that have held Bitcoin for at least 155 days. The Binary Spending Indicator, used to track when LTHs are spending a significant portion of their holdings, has shown a slowdown, indicating a greater willingness to hold rather than sell. This shift in sentiment among LTHs could be a key factor in the market moving forward.
In bull markets, intense sell-side pressure and profit-taking by LTHs often signal a shift to bearish behavior. Despite recent price fluctuations, long-term holders continue to hold a substantial portion of their profits, suggesting they may anticipate further upside potential for Bitcoin later in the year. This observation points to a potentially unique market dynamic unfolding.
On the other hand, a new trend has emerged with the accumulation of Bitcoin by new whales, addresses holding at least 1,000 BTC with an average acquisition age of less than six months. These new whales have been aggressively accumulating Bitcoin, indicating strong conviction in the cryptocurrency’s long-term prospects. Their influence in the market has grown significantly, with over 1 million BTC collectively acquired since November 2024.
The accelerated pace of accumulation by these new whales, amounting to over 200,000 BTC just this month, suggests a shift in market dynamics with increased institutional or high-net-worth participation. This influx of new players could reshape the market landscape in the coming months.
While some industry experts view Bitcoin’s recent price correction as a normal market cycle, others like CryptoQuant’s founder and CEO Ki Young Ju believe that the bull cycle may be coming to an end, anticipating a period of bearish or sideways price movement in the next 6-12 months. It remains to be seen how these contrasting views will impact the overall market sentiment and direction.
This article serves to provide insights into recent market trends and does not offer investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions.
