Bitcoin [BTC] has been on a steady uptrend, coming within a 1.8% margin of its all-time high (ATH) of $73,737 achieved in March 2024.
With a price above $72,000 currently, BTC has shown a nearly 10% surge over the past week and a 0.2% rise in the last 24 hours. This continuous upward momentum signals growing confidence among investors, supported by strong metrics indicating the robust fundamentals of Bitcoin.
Furthermore, the recent surge in prices seems to be largely driven by long-term holders (LTH) who are actively amassing Bitcoin, as pointed out by analyst Darkfost at CryptoQuant.
Increased Accumulation by Large Holders
Darkfost highlighted that the LTH 30-Day Net Position Change, a metric monitoring the monthly increase or decrease in Bitcoin holdings by long-term holders, indicates only a minor decrease despite BTC nearing its ATH.
The slight drop in net position change, according to Darkfost, is “about 2.5 times smaller than the decrease observed at the previous ATH,” hinting at a more controlled sell-off at present.
This trend suggests a vote of confidence from long-term holders in Bitcoin’s short-term prospects by choosing to hold onto their assets rather than liquidating them.
In addition to the actions of long-term holders, Bitcoin is experiencing a surge in interest from major investors, often referred to as “whales.” Data from IntoTheBlock shows that whale transactions have risen significantly from 15,000 transactions last week to over 20,000 currently.
This increase in whale transactions typically signifies substantial interest in Bitcoin from big investors who might be positioning themselves for potential price increases.
In the world of cryptocurrencies, whale activity can have a major impact on price movements, as their large holdings can influence the balance between supply and demand.
Positive Signals as Bitcoin Approaches a Crucial Price Point
Another key sign of strong investor sentiment is Bitcoin’s open interest, measuring the total number of outstanding derivative contracts linked to the asset.
Data from Coinglass indicates that BTC’s open interest has slightly risen by 0.33% to $43.59 billion.
However, the volume of Bitcoin’s open interest has seen a decline of 37.63% to $56.13 billion.
An increase in open interest typically indicates active participation from traders, while a drop in volume could suggest cautiousness among some investors who might be waiting for clearer price signals before making significant trades.
The alignment of these factors—increased accumulation by long-term holders, heightened whale interest, and rising open interest—presents a favorable environment for Bitcoin’s ongoing upward trajectory.
The resilience shown by long-term holders in avoiding selling at near ATH levels indicates a prevailing sense of optimism within the Bitcoin community.
Darkfost suggests that the steady accumulation by long-term holders could potentially spark a rally in the near future.