$BTC

Bitcoin is approaching its all-time high, but long-term investors remain steadfast — Is another rally on the horizon?

As Bitcoin flirts with its record price near $109,000, many traders are locking in profits, leading to a period of price consolidation around these high levels. This behavior is typical when an asset approaches an important milestone, with short-term investors seizing the opportunity to realize profits.

However, a closer analysis of the market reveals a different narrative when it comes to long-term holders (LTHs) — those who hold their Bitcoin for more than 150 days. According to the Long-Term Holder Spent Output Profit Ratio (SOPR), these investors are not actively selling. In fact, the SOPR for long-term holders has shown a downward trend, even as prices approach the all-time high.

This suggests that experienced investors are still not realizing profits. Instead, they seem to be accumulating more, reflecting strong confidence in Bitcoin's future growth potential. Their patience and conviction indicate that they expect the price to rise even further.

Thus, the current stagnation in prices appears to be largely driven by short-term traders and retail participants, rather than long-term believers. If this pattern holds, Bitcoin may soon emerge from its consolidation phase and enter a new bullish cycle — potentially setting new all-time highs in the near future.