Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
On-chain analyst IT Tech said a pattern seen around past market bottoms is reappearing as long-term Bitcoin holdings increase արագly, according to a CryptoQuant contribution.
IT Tech said the key metric in this cycle is BTC supply that has remained unmoved for six to 12 months. That cohort’s share of the aggregate holder cost basis jumped to 30.8% from 16.2% on Dec. 16 last year, while the share held for three to six months fell to 7.7% from 24.8% over the same period. The shares of BTC held for 12 to 18 months and 18 months to two years also rose to 17.0% and 9.9%, respectively.
IT Tech said BTC has been staying in wallets rather than moving to exchanges during the correction, extending a shift in which short-term holdings turn into long-term holdings. IT Tech assessed the pattern as one that typically appears in the early stage of a bull market and said a similar flow was seen before the 2022 market bottom. At the same time, BTC is currently at $75,000, down 40% from the $126,000 peak in October last year, though still far above the 2022 bottom range. IT Tech therefore assessed the current setup as closer to an interim bottom formed during a rising cycle than to the final bottom of the full cycle.