{"id":69977,"date":"2025-05-29T02:00:05","date_gmt":"2025-05-29T02:00:05","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=69977"},"modified":"2025-05-29T02:00:05","modified_gmt":"2025-05-29T02:00:05","slug":"bitcoin-diamond-hands-are-buying-again-heres-why-its-bullish-for-the-market","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=69977","title":{"rendered":"Bitcoin Diamond Hands Are Buying Again, Here\u2019s Why It\u2019s Bullish For The Market"},"content":{"rendered":"

Bitcoin has spent the last five days trading within a relatively narrow range between $106,229 and $111,807, following its recent all-time high of $111,814. Despite the increase in selling pressure from miners<\/a> after the all-time high, the price of Bitcoin has managed to hold above $108,000, with on-chain data showing Bitcoin diamond hands absorbing all the selling pressure.<\/a><\/p>\n

Long-Term Holders Accumulating With Minimal Spending<\/h2>\n

According to data from the on-chain analytics platform CryptoQuant, the Long-Term Holder (LTH) Spending Binary Indicator has fallen to its lowest level since September 2024.\u00a0This interesting trend\u00a0was initially noted<\/a> on the social media platform X by crypto analyst Alex Adler Jr.<\/p>\n

The 15-day moving average of this metric, as shown in the chart by CryptoQuant, has dropped to the minimal spending zone. Notably, this zone has consistently preceded a more bullish move in the Bitcoin price.\u00a0<\/p>\n

In parallel, long-term holder supply<\/a> has risen by approximately 300,000 BTC over the past 20 days. This marks a deviation from the trend of declines in the long-term holder supply since 2024. At the time of writing, 14.6 million BTC, representing about 74% of the total current circulating supply of BTC, is in addresses classified as long-term holders.\u00a0<\/p>\n

This pattern suggests that so-called \u201cdiamond hands\u201d, i.e., investors with a strong conviction who hold through volatility, are not only refraining from<\/a> selling with Bitcoin\u2019s recent new peak, but are actively accumulating. The chart below shows the correlation between minimal LTH spending and rising price action, a behavior that also aligned with phases of Bitcoin\u2019s uptrend in 2019, late 2020, and late 2024.<\/p>\n

Why It\u2019s Bullish For The Market<\/h2>\n

The significant uptick in long-term holder supply, combined with minimal selling activity, reveals a hidden strength in the market. The current behavior of long-term investors also indicates their confidence in Bitcoin\u2019s valuation <\/a>at current levels, despite the recent price surge. Many of these long-term holders are in substantial profit, yet still choose to hold. This is unlike short-term holder<\/a>s, who have collectively realized over $11.6 billion in profits over the past month alone.<\/a><\/p>\n

Drawing a parallel with historical data, the current decline in long-term holder (LTH) spending mirrors a similar pattern observed in September 2024. At that time, the LTH Indicator was in the minimal zone, and the long-term holder supply was also increasing steadily. <\/p>\n

What followed was a remarkable 96% surge in Bitcoin\u2019s price, rising from approximately $54,000 to peaks around $106,000 in December and January. If the market were to follow a similar trajectory from the current price level, a comparable 96% rally would see Bitcoin rise to a new peak near $212,000.<\/p>\n

At the time of writing, Bitcoin is trading at $109,000.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin has spent the last five days trading within a relatively narrow range between $106,229 and $111,807, following its recent all-time high of $111,814. Despite the increase in selling pressure from miners after the all-time high, the price of Bitcoin has managed to hold above $108,000, with on-chain data showing Bitcoin diamond hands absorbing all […]<\/p>\n","protected":false},"author":0,"featured_media":69978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-69977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/69977"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69977"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/69977\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/69978"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}