Bitcoin has been on a downtrend and consolidating since its peak in March, but signs indicate that a significant shift may be on the horizon.
According to analytics provider Glassnode, the recent rally to $66K marked the first higher high since June, signaling a potential change in market structure.
Furthermore, several on-chain metrics have hit new highs, indicating a possible end to the re-accumulation phase Bitcoin has been in since March.
“The recent price action hints at a potential shift in the structured downtrend.”
Bitcoin’s Cycle and Historical Patterns
Despite the extended consolidation period, Bitcoin’s current level aligns with past market cycles after lows, showing a growth of over 300% from cycle lows and suggesting room for further expansion.
The upward trend is also reflected in the increasing number of users and large holders adopting a long-term holding strategy for BTC. The Long/Short-Term Holder Supply Ratio has risen to 5.4 since May, indicating a preference for holding rather than selling the asset.
“HODLing remains the prevailing behavior among Bitcoin investors.”
Although around 6.5% of Long-Term Holders were at a loss as of October 1st, Glassnode noted that the losses were minimal, mirroring previous re-accumulation phases.
Additionally, the recent relief rally has propelled Short-Term Holders into profit territory, pointing towards a possible extension of the re-accumulation phase.
Renowned analyst Peter Brandt suggested that a market structure shift might occur if Bitcoin surpasses the $71K mark.
As of now, Bitcoin is hovering around $60K after a recent sell-off, indicating a cautious market sentiment.