Bitcoin is currently hovering around $115,000. Amidst the market volatility, a large group of BTC holders is behaving like impatient traders. Although they lack experience in many cycles and often capitulate, such a trend could drive new market strength after a downturn.

Behavior of BTC Holders

A new analysis shows that Bitcoin holders aged 3-5 are behaving more like short-term participants rather than seasoned investors in the current cycle. This group, mainly consisting of buyers from the 2021 cycle, is typically classified as long-term holders (LTH).

However, CryptoQuant notes that long-term investors are actually those who have survived at least two market cycles. Instead of taking profits at recent highs, these holders tend to sell more aggressively during downturns.

Analysts point out that such capitulation historically often coincides with market bottoms and usually precedes strong recoveries in Bitcoin prices. These findings indicate an increasing divergence between mid-term holders and veteran investors. This, in turn, raises questions about how this group could influence the next market phase.

Meanwhile, CryptoQuant recently recorded new activity among large Bitcoin investors, as the Exchange Whale Ratio increased to about 0.47-0.50. This metric tracks the ratio of BTC inflows into exchanges from the 10 largest transactions and is often seen as a measure of whale participation.

Previous reported cases clearly show a repeating pattern: a spike in whale ratios, stable prices, and ultimately recovery. With the indicator currently testing previous levels associated with bottom formation, this foundation suggests that Bitcoin may be entering the early stage of a new bull cycle.

The behavior of BTC holders aligns with the broader picture, indicating that this asset is still in a constructive market phase.

"No Red Flags" in BTC Trajectory

The Basic Bitcoin Index of Bitcoin Vector shows that after redistribution phases, BTC typically follows a three-step cycle: recovery, accumulation, and expansion. According to the analysis platform, the market is currently in the middle of the accumulation and expansion phase, which means this asset has further price increase potential. Importantly, Glassnode co-founder, Negentropic, added that the on-chain fundamentals remain solid, with no 'red flags' that could raise concerns.