Bitcoin Consolidates Near Record Highs, As Long-Term Holders Show Increased Activity
Recent Stirring in Old Bitcoin: Activity Among 1-Year to 5-Year Holders Surges – What Does This Long-Term Holder Behavior Indicate?
In the wake of reaching an all-time high of $112,000, Bitcoin is displaying a steady hold, with prices consolidating just beneath this level. Despite experiencing some short-term resistance, the broader market structure remains bullish, fueling expectations of an impulsive move once Bitcoin reclaims higher ground. Amid growing economic uncertainty globally, Bitcoin continues to demonstrate resilience, serving as a hedge and outperforming traditional risk assets.
Renewed confidence and engagement among experienced Bitcoin holders is evident in the data provided by Glassnode, which reveals that spending by older cohorts has spiked. Aggregate transaction volume from the 1-year to 5-year holding cohorts has soared to $4.02 billion, reaching its highest level since February. This surge in long-term holder activity often precedes major market shifts, as veteran participants seek to reposition.
While some interpret this activity as potential profit-taking, it also suggests long-term investors are preparing for broader market participation during the next leg up. As Bitcoin consolidates near record highs, this pattern of behavior could indicate veteran holders readying for future growth.
Bitcoin Awaits a Pivotal Test as It Consolidates
The current moment seems crucial for Bitcoin as it consolidates just beneath its all-time high. After a rally of over 50% since its April low, Bitcoin must now hold above the $106K-$108K zone and decisively break past the $112K level to indicate a new bullish impulse. The forthcoming days will shape the direction of the next phase of this cycle.
With macroeconomic tensions escalating, US and Japanese treasury yields signal systemic stress. In this context, Bitcoin appears to thrive as a hedge against financial instability in traditional markets. Its non-sovereign, decentralized nature continues to attract capital during times of uncertainty, and the recent price action reinforces this trend.
On-chain data from Glassnode adds substance to this view. Spending by older Bitcoin holders—those within the 1-5 year cohort—has risen significantly, with aggregate volume reaching $4.02 billion, the highest since February. The breakdown of this activity reveals substantial outflows from long-term wallets:
- 3-5 year cohort: $2.16 billion (second-largest this cycle, behind March 2021's $6 billion)
- 2-3 year cohort: $1.41 billion
- 1-2 year cohort: $450 million
This latest spending spike by 1-5 year holders marks the fifth-largest of the current cycle, primarily driven by those with three or more years of holding time. While some interpret this activity as profit-taking, it may also indicate conviction among experienced participants rotating capital or positioning for further gains.
With technical support holding, and liquidity returning, Bitcoin seems poised for a significant breakout. A decisive move above $112K, coupled with strong volume, would affirm the next stage of the bull market, potentially opening the way to $120K and beyond.
Bitcoin Miners Increase Selling Pressure Post-ATH
Bitcoin presently trades at $108,858 on the daily chart, consolidating just below its recent all-time high of $112,000. Price action suggests that Bitcoin is holding above the previous resistance zone-turned-support near $103,600, a level that served as a foundation for May's breakout. The market structure remains bullish, with Bitcoin printing a sequence of higher highs and higher lows since its April bottom.
The 34 EMA (green) at $102,277 and the 50 SMA (blue) at $96,844 are both trending upward, reinforcing a robust medium-term uptrend. These moving averages now function as dynamic support during potential pullbacks. Volume has slightly decreased during this consolidation, a common occurrence after a significant impulse move, signaling a pause before the next major decision.
To resume the bullish trend, Bitcoin must close decisively above the $112K mark. A breakout accompanied by strong volume could pave the way for a rapid advance toward $120K and beyond. On the downside, maintaining support above $103,600 is vital to avoid a deeper retracement.
- As Bitcoin consolidates near its all-time high, the renewed activity from long-term holders, particularly those with 3 or more years of holding time, raises the possibility that they are positioning for future growth in the technology-driven investing realm of cryptocurrencies.
- In the face of escalating macroeconomic tensions, Bitcoin, as a resilient finance innovation, continues to attract capital, and the recent surge in spending by long-term holders, despite some interpreting it as profit-taking, signals conviction among experienced investors, potentially preparing for further gains and broader market participation in the technology sector.
