Long-term holders of Bitcoin dominate the market and may be key to assessing the future direction of cryptocurrency. Over the past two weeks, Bitcoin has shown an upward trend, reaching a new high of $109,000 four days ago. Although the price has retraced, the upward momentum remains strong. The behavior of long-term holders, particularly their accumulation of Bitcoin during price declines and strategic profit-taking during price increases, supports a long-term bullish outlook for the market. The increased activity of short-term holders indicates speculative interest and FOMO-driven entries, but the distribution during price declines suggests short-term market volatility. The increasing maturity of the Bitcoin market, along with the supply dominance of long-term holders, may enhance market stability. Changes in the Bitcoin liquidity ratio and SOPR indicate that the market may be absorbing potential selling pressure, suggesting that prices could rise. The positive positioning of long-term holders may drive Bitcoin prices back up to $107,000, with attempts to reach $110,000.

For nearly 2 weeks, Bitcoin [BTC] has traded on an uptrend, with the cryptocurrency climbing to a new high of $109k four days ago too.Since hitting this level, BTC has seen some minor pullbacks on the charts. In fact, at the time of writing, the cryptocurrency was trading at $104,337 after declining somewhat on the daily timeframe. And yet, the uptrend was as intact as it was a few days ago.The consistency in BTC’s momentum can be attributed to holders’ behavior, especially long-term holders.Bitcoin long-term holders lead the marketAccording to CryptoQuant, Bitcoin is now facing a fierce battle between diamond hands and speculative FOMO.Owing to the same, long-term holders’ supply dominance has remained high, signaling strong long-term conviction. This cohort continues to accumulate BTC when the price drops and take profits strategically when the price surges. This well-controlled market behavior supports a bullish long-term outlook by limiting market selling pressure.On the contrary, short-term holders have seen a hike in activity during price rallies, indicating speculative interest and FOMO-driven entries.However, significant distribution whenever the price drops is a sign of weaker hands exiting the market, thus contributing to short-term volatility.With LTHs having a significant share of the supply, it seems that Bitcoin’s market has now matured.Therefore, the falling influence of STHs on supply can reinforce market stability. Although their speculative behavior might still drive short-term price swings.This combination positions Bitcoin for a bullish outlook throughout 2025. Strategic profit-taking by LTH could spur healthy pullbacks, offering opportunities for new accumulation.What does this mean for Bitcoin’s charts?While the analysis provided above offers us a promising outlook, it’s essential to counter-check other market indicators to determine what they mean and hint at.For starters, Bitcoin’s fund flow ratio has risen over the past week from 0.05 to 0.11.Such an uptick implies that more capital may be flowing into BTC, than leaving. Such a market approach can be interpreted as a sign of accumulation behavior.Additionally, Bitcoin’s SOPR declined from 1.05 to 1.01.This seemed to imply that with BTC trading sideways, holders have been reluctant to sell, resulting in supply scarcity. This, in turn, results in price appreciation. Simply put, the market may be absorbing potential selling pressure without a strong downturn on the charts.This scarcity can be confirmed by the rising stock-to-flow ratio. In fact, the SFR spiked from 124 to 599.03. Such a spike implies that more investors are keeping their assets off exchanges, either in private wallets or cold storage.In conclusion, with long-term holders strategically positioning themselves, the market is mature enough for a potential upside.Therefore, this positive perception from LTHs is playing a critical role in absorbing the selling pressure. If the market holds these conditions, Bitcoin will reclaim $107k and attempt to hit $110k. However, a sustained correction will mean a drop to $102,770.

Long-term Bitcoin holders dominate the market, driving up prices.