Bitcoin investors who have never sold their coins are resuming intense accumulation, according to data from CryptoQuant. This trend could be bullish for the cryptocurrency’s price. The Permanent Holders, a group of Bitcoin wallets that only buy and never sell, show high demand on-chain.
The Permanent Holders category excludes wallets associated with miners or exchanges, as these entities often act as selling pressure in the market. A recent chart from CryptoQuant shows an upward trajectory in demand from this cohort over the last few months, but it dropped below the 30-day simple moving average in January. However, demand has now accelerated, breaking above the 30-day SMA.
This trend is considered bullish, and investors who don’t sell their coins are likely to sustain their accumulation for some time. The ongoing trend of Accumulation Addresses will be crucial for Bitcoin’s price in the near future. A continued upward trajectory would be a positive sign, while a slowdown could lead to flat action in the asset.
Currently, Bitcoin is trading around $98,700 and has been moving sideways recently.
Source: https://bitcoinist.com/bitcoin-permanent-holder-demand-sharply-fresh-rally