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Bitcoin Sees Historically Large Contrarian Accumulation, Long-Term Holders Increase Holdings by 186,000 BTC in a Single Month
Summary: According to CryptoQuant on-chain data, there has been an unusual signal since October 6th, with the demand for BTC from long-term diamond hands surging from 159,000 to 345,000, marking the largest accumulation in recent cycles. However, contrary to historical patterns, the price has not risen but instead experienced a significant drop. When long-term holders accumulate ...
According to CryptoQuant on-chain data, there has been an unusual signal since October 6th, with the demand for BTC from long-term diamond hands surging from 159,000 to 345,000, marking the largest accumulation in recent cycles. However, contrary to historical patterns, the price has not risen but instead experienced a significant drop. When long-term holders accumulate supply in the past, it typically triggers supply squeeze and drives prices to temporary highs. This market cycle presents a contradiction: smart money is accumulating chips in extreme panic while the market is facing unrealized losses in the billions of dollars. Analysts point out that such abnormal accumulation during a downward trend usually indicates two outcomes: Scenario one - after absorbing supply depth, a strong rebound occurs when retail investors exit, allowing institutions to distribute chips to new entrants. Scenario two - prices further decline, thoroughly cleansing the market of buyers, even forcing strong buyers to reassess, laying the foundation for a more sustainable trend.
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Link: Bitcoin Sees Historically Large Contrarian Accumulation, Long-Term Holders Increase Holdings by 186,000 BTC in a Single Month [Copy]
