Bitcoin recently experienced a 4.5% pullback from its all-time high (ATH) above $100,000, achieved on Thursday. Long-term holders (LTHs)—those retaining Bitcoin for over 155 days—are once again at the center of attention. Their behavior, including accumulation and distribution, significantly impacts market trends.
Historical Patterns and Market Insights
CryptoQuant analyst Datascope highlights the role of the LTH accumulation/distribution ratio, an on-chain metric indicating market sentiment. When LTHs accumulate Bitcoin, it typically signals market bottoms, while increased distribution during price peaks often precedes corrections.
Historical data from 2013 and 2017 shows that heightened selling activity by LTHs coincided with major price corrections. In contrast, periods of intense accumulation, such as 2019 and 2020, preceded robust bull markets.