Bitcoin Long-Term Holders Reduce Holdings, Suggesting Start of Second Rally

CW8900, a contributor to CryptoQuant, analyzed the behavior of long-term holders (LTHs) of Bitcoin and found signs that a new bull phase may be starting. LTHs have begun reducing their holdings, which is a key signal that a second rally may be beginning.

In past cycles, long-term holders repeatedly shifted into selling before a bigger advance than the first occurred in a second rally. According to CW8900, this pattern is repeating itself in the current cycle.

LTHs now hold more Bitcoin than ever, and supply has started to shrink. This shift follows patterns seen in past bull markets, where whale investors distributed Bitcoin bought at lower prices to retail investors as prices climbed.