Bitcoin Above $105K: Will Long-Term Holders Fuel the Next Rally?
Bitcoin Holds Above $105K: A Deep Dive into Market Indicators
Bitcoin (BTC) has shown remarkable resilience, trading above $105,000 despite broader market uncertainty. This sustained price action begs the question: are long-term investors the key to Bitcoin's next significant rally? Let's analyze the data.
- Long-term holders show sustained commitment, suggesting Bitcoin is in an accumulation phase.
- Increased spot market purchasing activity reinforces the bullish sentiment.
Long-Term Holders Show No Signs of Selling
Analyzing the RHODL ratio (comparing long-term holders (6 months to 2 years) to short-term holders (1 day to 3 months)), we observe that long-term selling pressure remains minimal. The ratio is currently below 2, falling below the 2024 high, indicating strong long-term conviction.
Source: CryptoQuant
The Puell Multiple, a key market indicator, is below 1.40. Historically, readings below this level correlate with Bitcoin accumulation periods, suggesting further upside potential.
Source: CryptoQuant
Spot and Traditional Investors Buy the Dip
Recent activity confirms strong buying interest from both spot and traditional investors. While spot market purchases totaled $60.55 million in the last 24 hours (the lowest daily volume in the last five days), traditional investors significantly increased their buying, spending $301.70 million – among their highest five-day purchase volumes.
Source: CoinGlass
This suggests investors are capitalizing on the current price, which, based on the Puell Multiple, is still considered undervalued.
Crypto Funds Enter the Market: A Potential Supply Squeeze?
The Fund Market Premium shows that crypto investment funds are also actively buying Bitcoin. A positive premium (currently at 0.1) indicates fund buying. This trend, coupled with other accumulation signals, suggests a potential supply squeeze, where demand surpasses supply, potentially pushing prices higher.
Source: CryptoQuant
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