Bitcoin Long-Term Holdings Show Pattern Resembling 2022 Bottom

Long-term Bitcoin holdings are rapidly increasing, signaling a pattern that emerged during previous market bottoms, according to on-chain analyst ITtech. In a Cryptoscout article, he explained that the key focus this cycle is BTC held for six to twelve months, which now accounts for 30.8% of total holdings compared to 16.2% in December 2023. Meanwhile, short-term holdings (three to six months) have dropped from 24.8% to 7.7%. Holdings over 12-18 months and 18 months to two years have risen to 17.0% and 9.9%, respectively. The trend shows BTC remaining in wallets rather than moving to exchanges during corrections, shifting short-term holdings into long-term ones. This pattern typically appears at the start of a bull market. Similar trends were observed before the 2022 market low. However, with Bitcoin currently at $75,000—a 40% decline from last October's high of $126,000—it remains significantly above the 2022 bottom price, suggesting this is more likely a mid-cycle correction than the final bottom of the current cycle.