Long-term BTC holders are back in accumulation mode

The panic-selling phase of the Bitcoin market seems to have ended, with all spot sellers going through a relatively short capitulation period. Long-term wallets of BTC holders, aged more than 155 days since creation, are back in accumulation mode. 

Bitcoin (BTC) spot accumulation resumed , with coins flowing back into wallets created over 155 days ago. Some of the recent cohorts that bought during the December 2024 peak were challenged to hold through a drawdown as low as $70,000. 

BTC stabilized over $95,000 following a turbulent week. Accumulation resumed for multiple actors, from shark and whale wallets to corporate buyers. The current accumulation is slow, with selling pressure coming from short-term traders and whales. Despite this, the trend has switched from panic and capitulation to a new buying phase. 

A total of 14,907,459 BTC are held in wallets aged over 155 days, though without differentiating for the oldest historical whales and buyers. After the 2022-2023 bear market, accumulation and distribution had a faster turnover, as whales were quick to lock in profits.

On-chain data shows older wallets are more dedicated to holding through turbulence. The recent shift of funds to old addresses matches the pattern of a mid-cycle consolidation, ending the period of spot selling. 

BTC switched to accumulation from March onward, ending a cycle of distribution during the Q4 rally in 2024. The recent price moves showed whales took profits near the all-time high, but are now consolidating their positions, in expectation of the next rally. BTC usually breaks out after periods of accumulation and consolidation.

Spot BTC buying and outright ownership are happening in the background, while derivative markets are driving more dramatic price changes. Spot buying and holding is also reviving the narrative of scarcity for BTC, just as institutions, DeFi, miners , and other actors prepare to hold for the long term. 

Short-term BTC holders also show confidence

Almost all cohorts of BTC wallets are either holding or expanding their balances, based on the HODL wave heatmap. 

All cohorts of wallets are either holding or accumulating after BTC bounced from recent lows. | Source: Bitcoin Magazine Pro

Based on the Rainbow Chart, BTC is still in the buying range, expecting a higher breakout. The coin is yet to go through accumulation before attempting a new breakout. 

One of the reasons for short-term accumulation is that even the latest buyers were in profit after last week in the green. 

The supply in profit reached 87.6% of holders, up from a recent low of just 80% in the green. 

The price of BTC is now above the cost basis for the latest cohorts of buyers, ending the period of selling to cut losses. 

BTC rallied again during US trading hours, reaching $97,283.28, after a turbulent day on the Asian markets. The leading coin has shown that its price is easily affected by leveraged trading, but returns to its rising trend within days. 

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