Recent on-chain data from CryptoQuant reveals that Bitcoin investors known as “Permanent Holders” or “Accumulation Addresses” are back to intense accumulation. This group of investors, who have never sold their BTC holdings, are often seen as a bullish indicator for the cryptocurrency’s price.
The Accumulation Addresses went through a buying spree in the last months of 2024, but their demand sharply decreased in January 2025, coinciding with a slowdown in Bitcoin’s price. However, in the last few days, demand from this group has once again accelerated, with the indicator breaking above the 30-day simple moving average (SMA). Historically, this signals strong confidence and often precedes price rallies.
The resurgence of demand from Permanent Holders suggests that a significant amount of Bitcoin supply is being locked up by long-term investors. This reduction in available supply could potentially lead to a supply shock, driving up the price as demand outpaces the circulating supply.
While not all Permanent Holders will hold forever, as some will eventually sell to realize profits, the fact that these investors have no history of selling indicates a strong belief in Bitcoin’s long-term value. This accumulation trend is worth watching closely, as it could be a key factor in determining Bitcoin’s price direction in the near future.
From a technical analysis perspective, Bitcoin’s price has been trading around the $98,700 mark, showing indecision in the short-term. However, if the Accumulation Addresses continue their upward trajectory, it could provide the necessary catalyst for a breakout and a fresh rally.
Overall, the recent on-chain data from Bitcoin Accumulation Addresses paints a bullish picture for the cryptocurrency’s future price action. As long-term investors continue to accumulate and lock up supply, the stage could be set for another significant rally in the coming weeks or months.
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Tags: Bitcoin, Accumulation Addresses, Permanent Holders, On-chain Data, Technical Analysis, Price Rally
Source: https://bitcoinist.com/bitcoin-permanent-holder-demand-sharply-fresh-rally/