On-chain analyst Will Clemente is observing a change in the habits of long-term Bitcoin holders.
Clemente says that the net position change of long-term Bitcoin investors is now in positive territory, indicating that the number of BTC being ‘hodl’d’ is increasing.
“HODLer Net Position Change has flipped green for the first time since October.”
According to a chart accompanying Clemente’s statement, the net position of long-term Bitcoin investors has been in negative territory since November 2020 when the flagship cryptocurrency broke above the $15,000 mark for the first time in over two years.
In reference to a chart showing that the total supply of Bitcoin held by long-term holders has been increasing since late May, Clemente comments that it is a “signal.”
The chart shows that the total supply of Bitcoin in the hands of long-term holders had reached a peak towards the end of last year and hit a low around the end of the first quarter of this year before starting an upward trend.
The on-chain analyst also points out that if Bitcoin crosses above the $41,000 level, then it could easily reach $47,000 as there is a price gap between the two levels.
At time of writing, Bitcoin is trading at just below $40,000 after rising slightly above $41,000 on June 15th.
“Looking at on-chain volume, if BTC breaks above $41,000 there’s nothing but air between there and 47K.”
On the other hand, cryptocurrency trader known in the industry as Dave the Wave interprets the same shift as a bearish signal.
Dave the Wave references a chart which shows that as the net position change of long-term Bitcoin investors turned positive towards the first quarter of 2018, the price of the flagship cryptocurrency fell.