Bullish sentiment rises among long-term Bitcoin holders

in a Report Recently, CryptoQuant conducted an analysis of Bitcoin accumulation patterns and short- and long-term holder behavior to determine their impact on price trends and market sentiment. The report shows that short-term holders are likely to sell Bitcoin at high prices to take profits, causing the fair value of short-term holders to soar, further increasing the downward pressure. At the same time, long-term holders are withdrawing Bitcoin from exchanges and storing it in cold wallets, which may lead to a decline in fair value.

The report showed a clear pattern of accumulation, where Bitcoin outflows from exchanges were observed following massive Bitcoin inflows. The trend suggests that long-term holders are accumulating more bitcoin and storing it in cold wallets, reducing the supply of bitcoin on exchanges.

The report also hinted at optimism among investors who believe in the long-term value of Bitcoin and choose to hold their assets rather than sell them on exchanges.

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Source: CryptoQuant

Bitcoin’s move above $30,000 may have been due to a surge in flows into exchanges as short-term holders took profits. In turn, this caused long-term holders to accumulate more Bitcoin at $30,000.

The report shows that the outflow of buying Bitcoin from long-term holders has surpassed the inflow of Bitcoin from short-term holders to take profits. This trend reduces the overall supply of Bitcoin, making it even more scarce. As a result, bitcoin prices have been on a tear, breaking through the key $30,000 price level and jumping to a 10-month high of $31,000.

Long-term holders of Bitcoin believe in the cryptocurrency’s value and are still holding onto their assets, likely anticipating further price gains ahead, according to this report from CryptoQuant. The accumulation pattern observed in the report also suggests that Bitcoin is becoming increasingly scarce, which could lead to higher prices. However, it remains to be seen how this trend will continue in the coming months and how it will affect the entire crypto market.

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according to Kyptos

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