By Chris Hollingworth 
Bitcoin experienced a corrective phase in mid-March, reaching a four-month low of $76,600. Despite this decline, a new report highlights the behavior of long-term holders (LTHs) who continue to hold significant amounts of BTC, indicating a potentially unique market dynamic going forward. Glassnode’s March 18 markets report noted a subdued activity among long-term holders, with a decrease in their sell-side pressure.
Amidst Bitcoin’s recovery, signs of bullishness are emerging as the selling pressure from LTHs, wallets holding Bitcoin for at least 155 days, starts to diminish. The Binary Spending Indicator, which tracks when LTHs are spending a notable portion of their holdings consistently, has shown a slowdown. Additionally, the LTH supply is rebounding after a period of decline, suggesting a shift towards holding rather than selling coins within this group.
In bull markets, intense sell-side pressure and profit-taking from LTHs often mark the market tops. Despite recent price fluctuations, LTHs are holding onto a significant portion of their profits, indicating a belief in potential future price appreciation. This observation hints at a unique market dynamic unfolding in the Bitcoin space.
On the other hand, a new trend is emerging 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. Data from CryptoQuant shows that these new whales have acquired over 1 million BTC since November 2024, positioning themselves as influential market participants. Their accelerated accumulation, particularly in recent weeks, underscores a shift in market dynamics, possibly indicating increased institutional or high-net-worth participation.
While some industry experts view Bitcoin’s recent price drop as a normal correction, opinions on the market’s direction diverge. While some anticipate further bullish momentum, others, like CryptoQuant’s founder Ki Young Ju, believe the Bitcoin bull cycle has ended, foreseeing a period of bearish or sideways price action in the coming months.
It is essential to note that this article does not offer investment advice or recommendations. All investment decisions involve risks, and readers are encouraged to conduct their own research before making any financial decisions.
