Long-term Bitcoin holders have begun accumulating their assets again, often preceding price increases in the cryptocurrency sector. Recent technical analysis data also points to a positive trend.
Accumulation of Long-Term Bitcoin Holders
The accumulation of long-term holders (LTH) of Bitcoin has increased significantly, mirroring past bullish market cycles. Recent data shows that the ratio of LTH to short-term holders (STH) has reached 4.2. Analysts believe that this trend may foreshadow an anticipated price increase, and reaching $160,000 could just be a matter of time.
Technical Indicators Support a Bullish Outlook
Technical metrics such as MACD and the Relative Strength Index (RSI) reinforce the growing bullish trend. The MACD showed a positive crossover, signaling potential upward movement, while the RSI indicates room for further gains. Bullish flag patterns are also observed in the charts, further supporting the likelihood of upward price movement.
Network Activity and Geopolitical Situation
Despite the bullish indicators, the number of active Bitcoin addresses has steadily declined since late 2024, which may suggest a concentration of holdings among institutional or long-term participants. Additionally, the geopolitical landscape is aiding Bitcoin's popularity as a reserve asset. U.S. Senator Cynthia Lummis has called for Bitcoin to be included in national reserves, viewing it as a means to safeguard the country's economic stability.
In conclusion, the accumulation by long-term Bitcoin holders combined with positive technical indicators suggests a potential upward price movement. Geopolitical support for Bitcoin may also enhance its status as a reserve asset.
