Bitcoin Retail Confidence Grows As Short-Term Holders Step Up Accumulation

Bitcoin witnessed a slight rebound to the $102,000 price level, signaling growing upside momentum. However, the flagship asset encountered strong resistance around the $102,000 threshold, causing its price to retrace toward key support levels. As Bitcoin’s price fluctuates, strong bullish sentiment and activity have been observed among short-term holders.

A Notable Shift In Bitcoin Ownership

Recent price actions appear to have triggered a notable shift in Bitcoin ownership as short-term holders load up their accumulation of BTC. Alphractal, an advanced data analytics and investment platform identified the change in ownership, suggesting growing confidence among BTC retail investors.

Data from the platform shows that long-term holders have sold a significant amount of BTC, while short-term holders step in to absorb the supply. This change typically comes when long-term holders reduce their holdings, allowing short-term holders keen to take advantage of possible gains to buy more coins.

The massive sell-offs from long-term investors are considered a profit-taking strategy, indicating pessimism in BTC’s long-term performances among these investors. Meanwhile, the huge accumulation by short-term holders reflects strong optimism about BTC’s short-term potential.

After navigating the Bitcoin Supply Age Bands metric, Alphractal highlighted that history might be repeating itself once again as short-term sentiment grows.

As seen in past cycles, long-term participants become less interested in holding their previously acquired BTC, causing them to sell their coins. Meanwhile, like in past cycles, these investors are beginning to offload their holdings at a huge scale in the ongoing cycle.

On the other hand, short-term holders have shown to be more reactive and make riskier decisions because they purchase precisely during price spikes. Should these investors continue to accumulate BTC, the development could impact market volatility and shape the asset’s next major price move.

Short-term holders may be capitalizing on recent pullbacks, but Alphractal highlights that long-term holders tend to be smarter investors. This is due to a higher possibility of growth in the long term. These investors take advantage of the rising BTC prices to sell their positions, with a lower average buy price.

BTC’s Market Still Bullish As Profitability Remain At Good Levels

Despite significant corrections, BTC’s profitability remains at positive levels. Data shared by Axel Adler Jr., a macro researcher and author shows that Bitcoin’s average realized profit, net average realized profit, and average realized losses are valued at $911 million, $653 million, and $258 million respectively.

Considering the profitability levels, Axel Adler claims that the BTC market remains in a bullish phase. According to the expert, the current consolidation will likely come to an end when the Net Realized Profit/Loss (USD) 7DMA inches closer to zero or goes negative. This would imply that most sellers have already left the market, which is common during the final stage of a correction, leaving only panic-driven selling.