Despite the inherent unpredictability of cryptocurrency markets, historical patterns are drawing attention as Bitcoin’s short-term holder activity shows a notable increase, according to a recent analysis by CryptoQuant.
This accumulation trend among holders active for a week or less mirrors behavior observed prior to significant price rallies in January and October of the previous year. In both instances, a surge in short-term holder buying, indicated by a rise in active addresses, preceded substantial upward movements in Bitcoin’s price, culminating in a new all-time high in March 2024 following the ETF launch and another peak in January 2025 before Trump’s inauguration.
CryptoQuant’s analyst, Crypto Dan, highlighted the potential significance of this renewed short-term holder activity, suggesting it could be an early indicator of another bullish phase for Bitcoin, echoing past trends where this metric has reliably preceded major price surges. This observation comes as Bitcoin has demonstrated strong upward momentum following lows in early April, surging by over $20,000 to reach $96,000 last Friday. While the cryptocurrency subsequently traded within a narrow range, it recently broke above the upper boundary, reaching its highest price since February 23 and currently trading near $96,500.
Beyond the encouraging activity of short-term holders, additional bullish signals for Bitcoin include accumulation by large-scale investors, known as whales, and institutional buyers. This confluence of factors, alongside the historical correlation between short-term holder accumulation and price increases, is generating optimism within the cryptocurrency market for potential further gains in Bitcoin’s value.
