Bitcoin Holders Become Net Buyers for First Time Since October as ‘Death Cross’ Looms

Investors with a longer-term horizon look to be boosting their bitcoin (BTC, -2.88%) holdings amid calls for a more profound price drop.

Glassnode data shows the bitcoin “hodler net position change,” which tracks net buying/selling activity of those holding coins for six months or more, has flipped positive for the first time since late October. Hodl is crypto slang for hold.

“It shows HODLers are buyers here,” Delphi Digital said in its daily market commentary dated June 16. “The net positions of BTC HODLers is a strong indicator of how longer-term investors are thinking about BTC.”

Supply held by long-term holders has increased from 11 million to more than 11.6 million in the past few weeks, according to Glassnode.

While holders are now injecting bullish pressure into the market, that does not necessarily imply a sharp rally. Past data show bullish trends mostly pick up the pace after sustained accumulation by holders.

For example, the indicator remained positive for most of 2018, which was a negative year for bitcoin, and early 2019, when the cryptocurrency remained sidelined below $5,000. Bullish mood returned to the market in the second quarter of that year, pushing the cryptocurrency to $13,880 by the end of June.