Heightened fear and uncertainty were witnessed around Bitcoin traders, as the flagship crypto asset faces robust downside pressure, triggered by unfavorable market conditions. After significant selling activity due to the ongoing price drop, investors are once again demonstrating buying interest.
3-6 Months Bitcoin Holders On The Rise
Bitcoin investors’ sentiment is witnessing a gradual shift toward a bullish condition. On-chain data reveal renewed accumulation among holders, indicating growing confidence in BTC despite ongoing market volatility.
Market expert and researcher with the nickname ShayanBTC revealed the development in a quicktake post on CryptoQuant after delving into the Bitcoin Realized Cap UTXO Age Bands (%) metric. The Realized Cap UTXO Age Bands is a useful on-chain metric that shows the distribution percentage of BTC based on how long they have been held.
ShayanBTC highlighted that the percentage of coins held between 3 to 6 months has risen rapidly since the beginning of the year. Looking at the chart, the trend is similar to the accumulation seen during the extended correction in the summer of 2024.
A rise in the cohort is indicative of BTC holders’ persistent resiliency, unhinged by the current market correction. Furthermore, this pattern demonstrates holding behavior, in which investors choose to hold onto their Bitcoin holdings rather than sell them.
In the past, this kind of resiliency among BTC owners has been essential in creating market bottoms and starting fresh upward trends. As long-term holders keep adding to their holdings, the amount of BTC in circulation is limited, which makes the asset more scarce in the market. Meanwhile, when demand eventually gains traction, the shortage of supply frequently causes price spikes, propelling Bitcoin to new all-time highs.
Additionally, the data indicates that the current state of the Bitcoin market is the beginning of a long-term bear market, but rather a healthy correction based on the behavior among 3 to 6-month holders. Thus far, many players still consider the flagship asset as a long-term valuable investment, which supports the possibility of a future bullish continuation.
A Surge In BTC’s Accumulation Trend Score
With investors acquiring more coins, Bitcoin’s Accumulation Trend Score has turned positive. Glassnode, a leading financial and on-chain data platform reported that the key metric has increased above 0.1, reflecting renewed buying activity during the recent downtrend. Data shows that the BTC Accumulation Trend Score metric surpassed the 0.1 level on March 11, and has maintained its position above the area since then.
According to Glassnode, the change points to the start of accumulation even though distribution continues to dominate the market. Should the trend persist, BTC’s market dynamics might eventually move into an accumulation phase, bolstering its potential for a notable price recovery.
Featured image from Unsplash, chart from Tradingview.com
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