On-chain data shows that long-term Bitcoin holders have recently increased their holdings again. Although BTC is still in a pullback phase, the net increase in holdings by this group has risen to a six-year high, indicating that more mature funds in the market are still entering.

Long-term holders resume increasing their holdings

Data shows that the net change in Bitcoin long-term holders' holdings reached 1.29 million BTC in 30 days, marking the highest green reading since the 2017 bull market. This indicator reflects how much Bitcoin long-term investors have added or removed over the past month.

Normally, a red reading indicates a reduction in holdings, while a green reading represents an increase. This high-level increase in holdings indicates that some long-term funds did not exit the market following short-term fluctuations, but instead continued to buy when prices weakened.

Buying activity during the decline

Unlike previous cycles, this round of buying occurred when Bitcoin was near a recent low. The article states that speculative funds had already significantly reduced their holdings, but long-term holders chose to continue absorbing selling pressure.

This change subsequently propelled Bitcoin's price to rebound by approximately 15%, rising from around $58,000 to $66,000. The report also mentioned that if the buying continues, Bitcoin could potentially climb further to $70,000.

Market supply was further tightened

The continued accumulation of Bitcoin by long-term holders means a decrease in the number of Bitcoins available for circulation. The article argues that this type of behavior typically reduces selling pressure in the market and amplifies price rebounds when demand continues.