Long-Term Holders Fuel Bitcoin Rally, But Bull Market Not Yet Confirmed

Bitcoin long-term holders have accumulated more BTC at an accelerated rate than any time since 2017, according to CryptoQuant analyst Burakkesmeci. This trend suggests that experienced investors are buying into Bitcoin with confidence despite recent price weakness.

The indicator tracking long-term holder net position change reached a record high of 1.29 million BTC on May 24, surpassing the previous record set in August 2017. The metric tracks whether long-term holders are adding to or reducing their Bitcoin positions, and green readings signal accumulation while red indicate distribution.

Burakkesmeci noted that the recent record green reading suggests 'smart money' accumulated aggressively as Bitcoin approached its realized price during the market downturn. He cautioned that the indicator alone does not confirm a new bull market but described it as a strong bullish signal.

After the record accumulation, Bitcoin climbed about 15%, rising from roughly $58,000 to $66,000. The rally pushed the cryptocurrency close to the Short-Term Holder Realized Price (STH RP) of around $68,000, with Burakkesmeci identifying this level as a key resistance point.

A separate CryptoQuant analysis found that Bitcoin's Supply in Profit rose to 57.5% from 46.2% over the past three weeks, indicating that a growing share of BTC holders has returned to profitability. However, previous bear markets ended only after at least 64% of Bitcoin's supply returned to profit.