In the last 24 hours, there has been a noticeable recovery in the market, with Bitcoin’s [BTC] market capitalization rising by 1.44% to $1.88 trillion, alongside a significant 144.37% increase in trading volume.
This recent development has restricted BTC’s losses to a range of 6% over the past week and month.
Historical data indicates that BTC is potentially on the brink of a surge as investors steadily gather the asset.
BTC Investors Leading the Way for Further Expansion
Recent data from Glassnode suggests that following a period of substantial selling when BTC approached its all-time high of $108,353, BTC “shrimps” have resumed accumulating.
Here, “shrimps” denotes wallet addresses holding over one BTC.
The data demonstrates that this group has notably increased their holdings, accumulating an average of 17,600 BTC monthly, constituting 6.9% of the circulating BTC supply.
This accumulation trend hints at a bullish market outlook as investors continue to strengthen their positions, unfazed by recent market fluctuations.
A closer examination indicates that the recent shakeout might be setting the stage for an imminent bull run, reminiscent of the 2017 surge.
BTC Echoing 2017 Rally Through Similar Market Movements
Current data suggests that Bitcoin’s current market cycle closely resembles its trajectory during the 2017 bull market.
This analysis traces BTC’s price movements post-halving, a phase marked by reduced miners’ rewards.
The comparison unveils a consistent pattern in BTC’s behavior. If this trend persists, BTC could surpass its current All-Time High (ATH) significantly.
However, though aligning with 2017 overall, there have been sporadic deviations in price movements.
Ongoing Buying Indicates Bullish Momentum for BTC
According to CryptoQuant’s Binary Coin Days Destroyed (Binary CDD), a metric tracking Long-Term Holder (LTH) activity based on binary 1s and 0s, BTC holders are showcasing renewed confidence in the asset.
A reading of one suggests LTHs are shifting their assets, possibly for selling, while 0 indicates confidence, with holders choosing to retain BTC.
Currently, BTC’s Binary CDD stands at zero, signaling LTHs are accumulating rather than selling.
The derivatives market also reflects a bullish sentiment with the funding rate turning positive, reaching its peak in four days from approximately 0.00393 on January 10 to 0.0124 at present.
This marks the highest rate since January 2.
With persistent buying activity in the perpetual market, continual holdings by long-term investors, and gradual accumulation by traders in recent months, BTC seems primed for a bullish upsurge.