Bitcoin’s Diamond Hands: The New Gold Rush 🏴‍☠️💰

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Bitcoin, the digital currency that’s as unpredictable as a dwarf in a tavern, has been trading within a surprisingly narrow range over the last five days, between $106,229 and $111,807. This, after hitting an all-time high of $111,814, which was enough to make even the most stoic of miners do a double-take. Despite the increased selling pressure from these miners, Bitcoin has managed to hold above $108,000, thanks to the legendary “diamond hands” of long-term holders who are gobbling up every last bit of selling pressure like it’s going out of style. 🤑

Long-Term Holders Accumulating With Minimal Spending

According to the on-chain analytics platform CryptoQuant, the Long-Term Holder (LTH) Spending Binary Indicator has plummeted to its lowest level since September 2024. This fascinating trend was first spotted by crypto analyst Alex Adler Jr. on the social media platform X, where he’s known for his uncanny ability to predict market movements with the precision of a wizard casting a spell. 🧙‍♂️

The 15-day moving average of this metric has dropped into the minimal spending zone, a zone that has historically been a harbinger of good things to come for Bitcoin. It’s like the market’s version of a “Beware of the Dragon” sign, but in this case, the dragon is a bull. 🐂

Meanwhile, the long-term holder supply has swelled by about 300,000 BTC over the past 20 days, a stark contrast to the declining trend seen since 2024. At the time of writing, 14.6 million BTC, or roughly 74% of the total circulating supply, is sitting in addresses classified as long-term holders. This suggests that the so-called “diamond hands” are not only holding strong but are actively accumulating, even as Bitcoin hits new peaks. 🚀

The chart below shows the correlation between minimal LTH spending and rising price action, a pattern that has been a reliable indicator of Bitcoin’s uptrend in 2019, late 2020, and late 2024. It’s like the market’s version of a treasure map, leading us to the X that marks the spot of future riches. 🗺️

Why It’s Bullish For The Market

The significant uptick in long-term holder supply, coupled with minimal selling activity, reveals a hidden strength in the market. The current behavior of long-term investors also indicates their unwavering confidence in Bitcoin’s valuation, even after the recent price surge. Many of these long-term holders are sitting on substantial profits, yet they choose to hold, unlike the short-term holders who have collectively realized over $11.6 billion in profits over the past month. 🤑

Historical data shows a similar pattern in September 2024, when the LTH Indicator was in the minimal zone, and the long-term holder supply was steadily increasing. What followed was a remarkable 96% surge in Bitcoin’s price, rising from about $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 soar to a new peak near $212,000. 🚀

At the time of writing, Bitcoin is trading at $109,000, and the market is holding its breath to see if history will repeat itself. 🕰️

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2025-05-29 05:12