Bitcoin Long-Term Holders Reach All-Time High 73% of Supply

The supply of Bitcoin held by long-term holders (LTHs) has reached an all-time high of 14.46 million BTC, as reported by Glassnode. LTHs are investors who have held their Bitcoin for at least 155 days and are often regarded as "smart money" due to their strategic buying during price dips and selling during bull market peaks. This record high in LTH supply indicates that experienced investors are anticipating higher prices, a pattern that has historically preceded significant price rallies.

From March to June, the LTH supply increased by approximately 500,000 BTC, while short-term holders (STHs) sold around 350,000 BTC. Many investors who are now classified as LTHs entered the market during the euphoria surrounding January's record high of $109,000. Despite enduring a 30% correction and subsequent bounce back to a new record, these LTHs have demonstrated resilience. Currently, LTHs represent about 73% of Bitcoin’s circulating supply of 19.88 million BTC, highlighting their dominance in the market. This concentration of Bitcoin in long-term hands suggests potential for further price upside.

The recent trend of Bitcoin long-term holders accumulating more of the cryptocurrency signals a bullish outlook for the market. This accumulation indicates that seasoned traders are reducing their sell-side risk, which could lead to improved market stability. The realized profit from 1-year holders has dropped by 89%, suggesting that these holders are less likely to sell their assets in the near future. This behavior is often seen as a positive sign for the market, as it reduces the supply of Bitcoin available for trading and can drive up prices.

The movement of Bitcoin off exchanges and into cold wallets further supports this bullish outlook. This trend represents a long-term accumulation strategy, as holders are securing their assets in more secure storage solutions. This behavior is typically associated with a bullish market sentiment, as it indicates that holders are confident in the long-term value of Bitcoin and are not planning to sell their assets in the near future.

The current price of Bitcoin is testing a local resistance zone, which could lead to a bullish breakout if the price can sustain its momentum. The identified support levels at $103,700 and $95,600 provide a safety net for the price, which could prevent a significant correction. The bullish trajectory of Bitcoin is further supported by the recent spike in short futures liquidations, which reflects increased buying pressure in the market. This trend could provide additional bullish momentum for Bitcoin traders, as it indicates that more market participants are entering long positions.

The overall market sentiment for Bitcoin remains bullish, with analysts predicting that the cryptocurrency could reach between $150,000 and $200,000 by the end of 2025. This prediction is based on the current market trends and the behavior of long-term holders, who are accumulating more Bitcoin and reducing their sell-side risk. The bullish outlook for Bitcoin is further supported by the recent price movements, which have seen the cryptocurrency rocket 240% in short liquidations. This trend indicates that more holders are returning to profit, which could lead to increased buying pressure in the market.