Since the beginning of February, Bitcoin has had difficulty stabilizing above the $100,000 mark. Donald Trump’s tariff wars have triggered significant market volatility, keeping traders on edge.
However, despite these headwinds, a key group of coin holders—those with no recorded history of selling—have intensified their accumulation. This signals a strong conviction in the asset’s long-term prospects.
Bitcoin Long-Term Holders Remain Resilient
Data from the on-chain analytics platform CryptoQuant shows a spike in Bitcoin’s Permanent Holder Demand. According to the data provider, Bitcoin’s permanent holders consist of owners who primarily accumulate the coin over time and never engage in spending transactions, indicating a long-term holding strategy.
BeInCrypto’s assessment of the coin’s accumulator address demand reveals that since it hit a year-to-date low on February 2, it has soared. This reflects the surge in accumulation among these long-term investors.
Demand has rebounded even amid Bitcoin’s early February correction, signaling that long-term holders remain confident in the leading asset. Compared to previous cycles, fewer long-term holders are selling, reinforcing the bullish conviction.
Furthermore, BTC’s attempt to cross above its 20-day exponential moving average (EMA) confirms the resurgence in demand for the king coin. At press time, BTC trades at $98,022, slightly below this key moving average, which forms resistance above it at $98,995.
The 20-day EMA tracks an asset’s average price over the past 20 trading days by giving more weight to recent price data. When an asset is poised to break above this moving average, it signals growing bullish momentum, suggesting a potential shift toward an uptrend if sustained.
BTC Price Prediction: Strong Holder Demand to Push BTC Above Key Resistance?
Sustained demand for BTC among its permanent holders could trigger a rally above the resistance formed by its 20-day EMA. A successful break above this level would provide the momentum needed for the coin to reclaim its all-time high of $109,356.
However, if accumulation stalls among BTC investors, it could reverse current gains and drop to $92,325.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
