On-chain data shows a Bitcoin metric is forming a pattern that may hint that a bull run could be coming next for the asset.
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Is a Bitcoin bull run on the way? This particular metric may indicate that it is possible. Bitcoin HODLer Growth Rate Has Seemingly Reached The “Plateau” Stage
Charles Edwards, an analyst, recently shared a chart on X that shows a potential pattern forming in the BTC "HODLer Growth Rate" indicator. This indicator tracks the one-year growth in holdings of Bitcoin investors who have kept their coins dormant in their wallets for at least two years. Is a Bitcoin bull run on the way? This particular metric may indicate that it is possible.
Long-term holders (LTHs), who hold onto their coins for at least six months, are typically market participants with strong resolve who do not sell quickly, regardless of market conditions. Statistically, the longer an investor holds their coins, the less likely they are to sell at any point. Therefore, LTHs who have held their coins for two years or more are considered the most persistent investors.
It is worth keeping an eye on these investors as their behavior may have implications for the rest of the market. Although they are unlikely to exert influence in the short term, their behavior could have long-term effects. The chart shows the trend in the Bitcoin HODLer Growth Rate for this particular segment of LTHs over the past decade.
According to Charles' analysis, there seems to be a consistent pattern in the Bitcoin HODLer Growth Rate throughout market cycles. During bear markets, the indicator remains positive and in an uptrend, indicating that investors increase their holdings. As prices drop further, they accelerate their accumulation. As the bear market ends and a bull market begins, the metric's value flattens, suggesting that investors continue to accumulate at a constant rate. When the bull run starts, HODLers stop accumulation and begin to participate in distribution. The analyst notes that the Bitcoin HODLer Growth Rate has completed the rapid bear market expansion phase and is now plateauing. Based on previous cycles, this could mean that the Bitcoin market is in transition towards the next bull run.
BTC Price
Bitcoin remains stuck in a range as its price still trades around the $26,100 level.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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