Bitcoin Long-Term Holders Gain $26 Billion Amid Market Recovery

Bitcoin’s long-term holders gained $26 billion as prices rose from $74,450 to $94,900 in April. Following a 30% market correction, Bitcoin’s patterns reflected historical trends. Despite short-term holder losses, long-term investments gained traction, with 16.7 million BTC now in profit. Analysts foresee potential short-term fluctuations, with projected support levels between $90,500 and $88,750.

In the world of cryptocurrency, April was a remarkable month for Bitcoin’s long-term holders, marking a notable increase of $26 billion in value. Bitcoin’s price surged from approximately $74,450 to a high of $94,900, as reported by CryptoQuant. The realised market cap for long-term holders jumped from $345 billion to $371 billion—a clear win for those who held their positions through recent market turbulence.

This price surge comes in the wake of a 30% correction that Bitcoin experienced earlier this year, a pattern that appears to follow historical trends. Previous market cycles from 2013, 2017, and 2021 show that significant corrections often follow new all-time highs and tend to clear out weaker investors before the price rebounds.

Long-term holders demonstrated remarkable resilience, especially against the backdrop of traditional markets faltering. While US stocks faced challenges, Bitcoin seemed to separate from those movements, increasing its allure as an investment. Gold also saw a substantial rise, with prices reaching $3,500. This appears to have further solidified confidence among long-term holders in Bitcoin’s role as a store of value.

Meanwhile, short-term holders weren’t quite as fortunate. According to Cointelegraph, many short-term traders sold at a loss during the recent downturn, a common response under market stress. This behaviour aligns with observed trends from 2024, where short-term holders typically shift positions to long-term holders during market corrections.

Encouragingly, Bitcoin’s current profit metrics suggest a positive outlook. Roughly 16.7 million BTC across multiple addresses are currently in profit, exceeding what is often termed the “threshold of optimism”. Historical comparisons from 2016, 2020, and now 2024 indicate that maintaining status above this key measure often leads to substantial price rallies.

As Bitcoin levels out around the $94,900 mark, analysts are anticipating a potential cooldown phase. Michael van de Poppe from MNCapital notes that after significant price movement, slight corrections are routine. Furthermore, some traders have suggested that Bitcoin may drop to about $91,000 before stabilising.

Looking ahead, it seems likely that Bitcoin’s price could fluctuate between $94,900 and $88,750 as traders seek to find balance. Recent price activities point to a possible consolidation phase, with support sitting between $90,500 and $88,750, a range seen as critical in maintaining bullish sentiment. Should the price dip below, it could weaken the positive outlook and prompt further declines towards $84,000 to $86,300, where Bitcoin had previously lingered before its latest positive breakout.