Record-Breaking Long-Term Holders Fuel Debate Over Bitcoin's Recovery Path

Long-term Bitcoin (BTC) holders are now in control of a record 79% of the circulating supply, according to K33 Research. This marks a steady increase in buying and holding over time, with fewer coins available for short-term trading.

The on-chain signal suggests that many investors have confidence in the market despite current price weakness. However, some traders believe the market still needs more time to recover from its recent capitulation phase.

Crypto analyst Joao Wedson believes that past cycle lows were characterized by miners facing heavy losses and coins moving across the network within seven days. If these signs appear during this cycle, he predicts a short recovery period with limited buying opportunities.

Market analyst Michaël van de Poppe suggests that a weekly close above the 200-week moving average is crucial for further gains. He also warns against selling in hopes of buying back at a lower price, recommending holding until key levels are tested.