Bitcoin Diamond Hands Are Buying Again, Here’s Why It’s Bullish For The Market

Summary

Bitcoin has traded between $106,229 and $111,807 for five days after reaching an all-time high of $111,814. Despite increased selling pressure from miners, Bitcoin remains above $108,000, with long-term holders absorbing the selling. The Long-Term Holder (LTH) Spending Binary Indicator has dropped to its lowest since September 2024, indicating minimal spending and suggesting potential bullish movement. Long-term holder supply has increased by approximately 300,000 BTC over the past 20 days, with 14.6 million BTC (74% of circulating supply) held by long-term investors. This behavior reflects confidence in Bitcoin's valuation, contrasting with short-term holders who realized over $11.6 billion in profits recently. Historical patterns show that minimal LTH spending preceded significant price surges, such as a 96% increase observed in late 2024. If a similar trend occurs now, Bitcoin could potentially rise to around $212,000. Currently, Bitcoin is trading at $109,000.