In the lead-up to the ETF approval, Bitcoin holders were observed to sell off their holdings (blue box). However, a shift in behavior was noted during the consolidation phase, with short-term holders transitioning to long-term holders of 3-6 months, continuously accumulating without selling (green box).

This trend, primarily driven by whales, could serve as a strong support indicator for the market. The consistent accumulation by these major players reflects a positive sentiment towards the future of Bitcoin, suggesting a bullish market outlook.

This analysis underscores the importance of on-chain data in understanding market dynamics and investor behavior, providing valuable insights for strategic decision-making in the crypto space.

Written by Mignolet.