How Will It Affect the Price in the Coming Months? Here’s the Answer

Cryptocurrency analytics firm Alphractal has released its latest assessment of the Bitcoin market, highlighting a renewed surge in long-term whale accumulation that could have mixed effects on near-term price movements.

According to Alphractal, Long-Term Holders (LTH) currently control 14.39 million BTC, accounting for 72.48% of the total circulating supply. In comparison, Short-Term Holders (STH) hold 5.46 million BTC, or 27.48%. This increasing dominance of LTH in Bitcoin distribution points to a clear return to an accumulation trend that could shape the market’s trajectory in the coming months, according to the analytics firm.

“At first glance, this may not seem very promising for near-term price action,” Alphractal said. “Historically, periods of sustained accumulation by LTH have usually been followed by downward price pressure, as the supply held by STH has been more sensitive to demand and current market sentiment.”

However, the firm noted that the 1-year change in LTH Accumulation and Distribution clearly indicates a return to accumulation. This trend is generally viewed as a long-term bullish signal, especially in today’s volatile macroeconomic environment where uncertainty around interest rates and geopolitical tensions is high.

Alphractal has also observed an increase in short positions by retail investors, which could increase the potential for a short squeeze, a scenario where mass liquidation of shorts pushes prices higher.

However, analysts warn that if long interest picks up again, this could signal the formation of a local price top in the short term.

*This is not investment advice.