Bitcoin Accumulation Grows as BTC Approaches Key $100K Resistance Zone
Bitcoin (BTC) has risen by 3% since the start of May, following a 14% increase in April, signaling growing investor optimism.
Bitcoin exchange-traded funds (ETFs) have seen increased inflows over the past two weeks, while the ongoing accumulation by Bitcoin treasuries continues to support the market’s strength.
On-chain data from Glassnode shows that both long-term holders (LTHs) and short-term holders (STHs) are increasing their BTC holdings. LTHs have been steadily adding to their positions since March, while STHs have begun to accumulate more BTC in the past week.
Glassnode defines LTHs as those who have held Bitcoin for 155 days or longer, and STHs as those holding for less than 155 days. Since March, LTHs have accumulated over 250,000 BTC, raising their total holdings to more than 14 million BTC.
“This accumulation trend indicates a renewed sense of confidence in the market, with buying pressures outweighing selling behavior,” Glassnode noted in its recent report.
Despite typically acting in opposition to LTHs, STHs have also shown signs of renewed confidence, adding over 25,000 BTC in the last week. This marks a shift from the more than 200,000 BTC sold during Bitcoin’s 30% drawdown earlier this year.
Bitcoin is now approaching the $97,000 level, signaling that broad-based accumulation is taking place. However, Glassnode points out a significant resistance point at $99,900, where long-term holders may begin to take profits, having realized more than 350% in unrealized gains.
“As Bitcoin nears this resistance level, we expect an uptick in sell-side pressure, requiring strong buy-side demand to absorb the selling and maintain upward momentum,” Glassnode stated.
To sum up, Bitcoin’s ongoing accumulation suggests rising confidence, but the $99,900 resistance level may spark profit-taking, creating a potential obstacle to further price appreciation.
