Bitcoin Surges 10% Weekly Amid Bullish Accumulation by Long-Term Holders

Bitcoin (BTC) has experienced a significant shift in trader sentiment, as evidenced by a 10% weekly gain amidst concerning economic data from the United States. This surge in value comes as long-term holders of Bitcoin have shown aggressive accumulation, with the long-term holder realized cap (LTH Realized Cap) surpassing $18 billion for the first time since September 2024. This metric, which measures the cost basis of investors holding their Bitcoin for 155 days or more, indicates a bullish accumulation phase. Historically, spikes in this metric have preceded bullish rallies, with the most recent example being the 100% returns Bitcoin registered over a few months following the LTH realized cap reaching $18 billion on September 8, 2024.

Another key indicator supporting this shift in sentiment is the significant drop in open interest. Bitcoin's open interest reached an all-time high of $39 billion in July but dropped by 25% by September. Similarly, Bitcoin's open interest dropped 28% between December 18 and April 8. The concurrent rise in LTH Realized Cap and a leverage wipeout strongly support the likelihood of a Bitcoin price bottom. However, Bitcoin's open interest has surged by nearly 10% in the past 24 hours, suggesting that the price action following this spike could offer better directional bias in the coming days.

Bitcoin has also built support at $79,000 after forming a new yearly low at $74,500 on April 7-9. This support level is significant as it indicates investor accumulation patterns. The rally past $81,000 was spurred by a 2.4% US CPI rate and President Trump's 90-day tariff pause, with market sentiment leaning toward cautious optimism for a relief rally. Technical analysts have also noted a descending trendline for Bitcoin, with the price testing a potential bullish breakout. This analysis suggests that Bitcoin's price action could offer better directional bias in the coming days, supporting the likelihood of a price bottom.

In summary, the recent 10% weekly gain in Bitcoin's value, coupled with aggressive accumulation by long-term holders and a significant drop in open interest, indicates a shift in trader sentiment towards a bullish outlook. The support level at $79,000 and the potential for a bullish breakout further support this sentiment shift. However, traders should remain cautious and conduct their own research when making investment decisions, as every investment and trading move involves risk.