The broader crypto market appears to be witnessing a Bitcoin-driven bullish action as the largest digital asset surges past the pivotal $103,000 price mark. Bitcoin’s renewed upward trend has stirred up optimism among key market participants, as indicated by the movements of old coins from long-term holders.
Old Bitcoin From Long-Term Holders On The Move
Following Bitcoin’s notable bullish move, Alphractal, an on-chain data platform, has underscored a positive behavior from long-term BTC holders. Given the rise in BTC’s value, these long-term investors are starting to move their old or dormant coins after several months of inactivity.
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According to the on-chain platform, this conduct frequently indicates a change in attitude among the most seasoned market players. This slight but noticeable rise in activity among wallets that have held Bitcoin for a number of years implies that some seasoned investors may be taking advantage of the recent upswing.
Since the developments come amid BTC’s price growth, it also raises the question about whether long-term holders are considering profit-taking or expecting increased market turbulence. However, the resurfacing of old BTC might serve as a supporting catalyst to the ongoing rally toward the current all-time high.
In addition to dormant BTC reawakening, the platform has highlighted an improvement in network risk, which has reduced significantly in the face of the current rally. Alphractal revealed the reduced risk after investigating the Bitcoin Reserve Risk Indicators, implying possible chances for accumulation.
The Reserve Risk is a powerful combination of metrics that assesses whether Bitcoin is in overbought or oversold territory based on BTC holders‘ behavior. It is important to note that the Reserve Risk Indicators are made up of two distinct aspects. These include the VOCDD and MVOCDD indicators, which calculate the velocity of coin destruction, reflecting holder activity.
Specifically, the MVOCDD indicator serves as a top signal, alerting traders when the market is close to a reversal. Overall, Alphractal noted that the behaviour of long-term holders and the low network risk continues to support a long-term outlook.
Steady Accumulation Pushes BTC Realized Cap To New Heights
Long-term and short-term holders have been accumulating since BTC began its upward trend a few weeks ago. As a result, Bitcoin Realized Cap has surged to a new all-time high for the third consecutive week, hitting $890.74 billion.
The development suggests that long-term and short-term holders are becoming more confident and fortifying their holdings as the market begins to recover. BTC’s price might rise significantly due to this trend, especially if investment volumes continue to accelerate.
Furthermore, the realized cap move to a new peak marks a surge in capital invested and reflects strong conviction in Bitcoin’s long-term potential as a financial asset. With the persistent accumulation by long-term and short-term holders, the market seems to be laying a robust base for a big rally, hinting at an early stage of a new Bitcoin bull cycle.
