Bitcoin Long-Term Holders Gain $26 Billion as Price Surges 29%

Bitcoin long-term holders have seen a significant boost in their collective wealth, with an increase of $26 billion. This surge is attributed to the cryptocurrency's price recovery, which saw it rise from $74,450 to $94,900 in April. The realized market cap for long-term holders jumped from $345 billion to $371 billion during this period, highlighting the resilience of these investors who maintained their positions despite market fluctuations.

The recent 30% correction in Bitcoin's price, which occurred between January and early April, aligns with historical market cycles. Previous cycles in 2013, 2017, and 2021 have shown similar drawdowns following new all-time highs. These corrections typically shake out weaker investors before the upward trend resumes, a pattern that has been consistent across multiple bull market cycles.

During the correction, short-term holders frequently sold their Bitcoin at a loss in early April, while long-term holders maintained their positions. This behavior is part of a recurring trend in 2024, where short-term holders transfer coins to long-term holders during market corrections. This transfer often precedes new price rallies, as seen in historical data from 2016, 2020, and 2024. Currently, 16.7 million BTC in various addresses are in profit, a metric that has increased above what analysts call the “threshold of optimism.”

Following its rise to $94,900, Bitcoin may enter a consolidation phase. Cryptocurrency trader and MNCapital founder Michael van de Poppe noted that after a massive breakout, it is “normal to have a slight correction.” From a technical perspective, Bitcoin may trade between $94,900 and $88,750 in the near term. Key support lies between $90,500 and $88,750, representing a fair value gap. If prices drop below this range, it could invalidate the lower timeframe bullish structure, pushing prices toward the next support zone between $84,000 and $86,300.

Bitcoin broke out of a four-month falling wedge pattern earlier this month, closing above the 200-day moving average. The relative strength index (RSI) confirms bullish momentum with a reading above 50, remaining below overbought levels and giving the price room to move higher. Investors should watch the psychological $100,000 area for potential selling pressure. This level connects price action from November through February. A close above $100,000 could see prices move toward $107,000, near the December and January peaks. This target aligns with the measured move from the falling wedge pattern. If selling occurs, initial support sits around $85,000 near this month’s breakout point. A deeper pullback might test lower support at $76,000, near a trendline connecting April’s low with post-election prices from November.

Bitcoin, along with other risk assets, has rallied in recent days amid optimism about reduced tariffs. President Trump indicated that levies on China will be “substantially” below the current 145% level. Market sentiment also improved after the president walked back rhetoric about firing Federal Reserve Chair Jerome Powell. This boosted confidence that the central bank will maintain its independence. While Bitcoin remains below its January record high of $109,000, it has risen about 25% from its early April 2025 low. Some investors may be turning to the cryptocurrency as an alternative to volatile stocks and a weakening U.S. dollar. Bitcoin was recently trading at $93,500, putting the closely watched $100,000 level back within striking distance.