Bitcoin [BTC] has been making steady progress, now just a slight 1.8% drop away from its all-time high (ATH) of $73,737 achieved in March 2024.
Currently trading above $72,000, BTC has recorded an impressive nearly 10% increase over the past week and a 0.2% uptick in the last 24 hours. This consistent upward movement reflects renewed investor trust, supported by metrics indicating the strong fundamentals of Bitcoin.
Moreover, this recent surge in prices seems to be primarily fueled by long-term investors (LTH) who are actively amassing Bitcoin, as highlighted by CryptoQuant analyst Darkfost.
Notable Increase in Whales’ Holdings
As per the CryptoQuant analyst, the LTH 30-Day Net Position Change—a metric monitoring the monthly growth or decline in Bitcoin holdings by long-term investors—reveals that despite BTC nearing its ATH, there is only a minor decrease in the net position change.
Darkfost clarifies that this slight dip in net position change is “roughly 2.5 times smaller than the decrease observed during the previous ATH,” indicating that the current sell-off is more controlled.
This trend implies that long-term holders are demonstrating trust in Bitcoin’s short-term prospects by holding onto their holdings instead of selling.
In addition to the actions of long-term holders, Bitcoin is experiencing heightened attention from significant investors, often referred to as “whales.” Data from IntoTheBlock suggests that whale transactions have seen a notable uptick, climbing from 15,000 transactions last week to over 20,000 presently.
Such a surge in whale transactions generally signals considerable interest in Bitcoin from major investors, who could be positioning themselves for potential future price increases.
In the cryptocurrency markets, whale activity can trigger significant price fluctuations, given that their large holdings have the ability to influence supply and demand dynamics.
Encouraging Signs Emerge as Bitcoin Nears a Crucial Price Marker
Another key gauge of robust investor sentiment is Bitcoin’s open interest, which gauges the total number of active derivative contracts linked to the asset.
Data from Coinglass shows that BTC’s open interest has experienced a minor uptick, rising by 0.33% to hit a value of $43.59 billion.
However, Bitcoin’s open interest volume has showcased an opposing trend, with a decline of 37.63% to a valuation of $56.13 billion.
An increase in open interest typically indicates active involvement of traders in the asset, while a drop in volume may suggest caution among certain investors, potentially waiting for additional price signals before making significant trades.
The combination of these factors—accumulation by long-term holders, escalated whale interest, and heightened open interest—has laid down a favorable foundation for Bitcoin’s sustained upward trajectory.
Long-term holders demonstrating resilience and refraining from selling near ATH levels points towards a prevailing sentiment of hope within the Bitcoin community.
Darkfost concludes that this careful yet consistent accumulation by long-term holders could pave the way for a potential surge in the upcoming days.