In fact, Bitcoin long-term holders (LTHs) just saw the greatest proportionate rise in their realized market cap. Unbelievably, they took in $26 billion from April 1 to April 23. This increase came as Bitcoin’s price recaptured $94,900, after a 30%+ correction from January to early April. This correction matches historical market cycles, making it an investment attractive.

For Bitcoin, there are only 16.7 million BTC in currently profitable addresses. The digital asset’s increasing decoupling from traditional markets was another factor propelling its investment allure. The recent price movements reflect a pattern observed throughout 2024, where short-term holders often sell during corrections, with long-term holders absorbing the supply.

The long-term holder realized market cap increased by $26 billion, surging from $345 billion to $371 billion. This increase is no reflection on the depth of these investors’ faith. In conclusion, Bitcoin’s -30% correction falls completely in line with historical BTC market cycles in their infancy. An analysis of previous years (2013, 2017, and 2021) shows that Bitcoin drawdowns are normal after achieving a new all time high.

While Bitcoin’s store-of-value narrative was probably helped along by the investor demand for non-correlated assets. Nothing but bullish. This is all reflected in gold price skyrocketing towards the new all-time highs at $3,500. Bitcoin exchange outflows reflect patterns observed throughout 2023 as whales continue to nimbly purchase BTC during retail sell-offs.

Bitcoin is still trading firmly above a key bullish zone. This usually ignites massive bullish parabolas that propel prices to new all-time highs in a few short months. If BTC starts another drop, immediate support might be in the $88,750 and $91,000 zone. As noted by one analyst crediting fund manager and investor Dan Tapiero, Bitcoin’s next significant level of resistance is at $95,000.

"Bitcoin has tested its weekly resistance for now, and BTC may drop as low as $91,000" - Jelle

These short-term holders of Bitcoin were forced to sell at a loss, and primarily in early April. Bitcoin’s most important support area is between $90,500 and $88,750, which marks a fair value gap.