Bitcoin holds above $105K: Will long-term investors drive BTC’s next rally?

• Long-term holders remain committed, with Bitcoin still in an accumulation phase.
• Spot market purchasing activity has added to the existing bullish sentiment.

In the past 24 hours, Bitcoin [BTC] recorded a 1.12% price increase, trading above $105,000 at press time.

Despite broader market turmoil, Bitcoin’s price has remained resilient, largely due to the activity of long-term holders. AMBCrypto analyzed whether this trend is sustainable.

Long-term holders show no signs of selling

Bitcoin’s RHODL ratio—which compares long-term holders (6 months to 2 years) with short-term holders (1 day to 3 months)—showed that the latter were still holding.

Notably, the RHODL ratio was now trading below 2, under the 2024 high, indicating that long-term selling pressure remained minimal.

The Puell Multiple, an important market indicator, showed a reading below 1.40 at press time.

This metric is significant because it suggests institutional and spot market investors are taking advantage of the accumulation phase to buy the asset.

Historically, when the Puell Multiple stays below the 1.40 level, it aligns with accumulation periods—signaling more upside potential for Bitcoin.

AMBCrypto further assessed whether market participants are accumulating or distributing the asset.

Spot and traditional investors buys Bitcoin dip

Both spot market activity and traditional investors had increased their buying activities.

Over the past 24 hours, spot market investors spent $60.55 million on Bitcoin. However, this is the lowest daily purchase volume in the last five days.

At the same time, traditional investors spent $301.70 million, marking one of the highest five-day purchase volumes.

This activity confirms that investors are trying to take advantage of the current price level at $105,000, which, based on the Puell Multiple, is still viewed as a discount.

The question remains: will all market segments align with the accumulation trend? AMBCrypto dug deeper and uncovered more insights.

Crypto funds enter the market: Supply squeeze?

At press time, the Fund Market Premium showed that crypto investment funds were also buying Bitcoin.

Buying occurs when the fund market premium moves into the positive region on the chart—which it currently has, at 0.1.

A continued rise in this metric suggests Bitcoin is likely to maintain its upward trend, especially when viewed alongside other accumulation indicators. It also raises the potential for a supply squeeze.

A supply squeeze occurs when demand outpaces supply, driving the asset’s price higher.