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Amid market volatility, the behavior of Bitcoin investors has shifted: the proportion of coins held by them has started to increase again, according to analysts from the on-chain platform CryptoQuant.
Their analysis indicates that the rise in Bitcoin supply among long-term holders (LTH) may signal a change in market trend.
“The volume of the leading cryptocurrency moving to long-term holders has begun to surpass sales volumes. The indicator has moved from negative territory (674,000 BTC at the end of November) to positive. On average, they are accumulating about 308,000 Bitcoins,” stated CryptoQuant.
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This may suggest that investors are increasingly opting to hold Bitcoin rather than sell it. Historically, such trends have often preceded price increases.
At the same time, analysts have urged caution. Similar signals can also be observed in a bear market, which may not lead to a sustainable upward trend, making it premature to declare a cycle reversal.
The future market dynamics, according to CryptoQuant, will be influenced by external factors, including the macroeconomic environment, liquidity levels, and the influx of large capital.
Previously, analyst Michael van de Poppe indicated that bullish signals for Bitcoin are strengthening, bringing it closer to a key breakout level.
