The overall cryptocurrency market is experiencing a surge driven by Bitcoin, which has recently crossed the significant $103,000 threshold. This upward trend has sparked optimism among major market participants, particularly as older coins are being circulated again by long-term holders.

Long-Term Holders Move Old Bitcoin

After Bitcoin’s recent price hike, Alphractal, a platform focused on on-chain data, has pointed out a notable shift in behavior among long-term BTC holders. With the increase in Bitcoin’s value, many of these investors are starting to transfer their previously inactive coins.

For further insights: Bitcoin Supply Increase: Long-Term Investors Resuming Acquisitions

The data indicates a potential shift in mindset among veteran market players. This uptick in activity from wallets that have held Bitcoin for several years suggests that some established investors are looking to capitalize on the recent price increase.

This trend raises questions about whether these longtime holders are opting to take profits or bracing themselves for potential market volatility. Nevertheless, the movement of old Bitcoin may act as a positive force propelling the current price rally towards new record levels.

Moreover, alongside the reactivation of dormant BTC, Alphractal has observed a decrease in network risk amid the ongoing rally. Their findings reveal reduced risk levels through analysis of Bitcoin’s Reserve Risk Indicators, indicating favorable conditions for accumulation.

The Reserve Risk is a critical metric used to evaluate whether Bitcoin is either overbought or oversold, based on the actions of BTC holders. It comprises two main components: the VOCDD and MVOCDD indicators, which assess how quickly coins are being moved, signaling holder activity.

Specifically, the MVOCDD functions as an early warning sign for traders regarding potential market reversals. Overall, Alphractal highlighted that the new activities from long-term holders and the lower network risk reinforce a positive long-term view on Bitcoin.

Growing Accumulation Elevates BTC Realized Cap

Both long-term and short-term holders have been accumulating Bitcoin since its recent upward movement began. Consequently, the Bitcoin Realized Cap has experienced an increase, reaching a record $890.74 billion for the third consecutive week.

This trend indicates that both categories of holders are increasingly confident and strengthening their positions as the market begins to rebound. The price of BTC could potentially soar as this accumulation continues, especially if investment volumes keep climbing.

Furthermore, this new high in the realized cap signifies a significant inflow of capital and reflects solid confidence in Bitcoin’s viability as a long-term financial asset. With accumulating support from both long-term and short-term holders, the market appears to be establishing a strong foundation for a major rally, suggesting the onset of a new Bitcoin bull market.