Bitcoin Accumulation Strengthens as BTC Approaches Critical $100K Resistance

Bitcoin (BTC) has seen a 3% increase in value since the beginning of May, adding to the 14% gain in April, as market sentiment continues to improve.

Bitcoin exchange-traded funds (ETFs) have witnessed a surge in inflows over the past two weeks, while the steady accumulation by Bitcoin treasuries is providing additional market support.

On-chain data from Glassnode reveals an uptick in Bitcoin holdings among both long-term holders (LTHs) and short-term holders (STHs). LTHs have been increasing their positions since March, while STHs have begun to accumulate more BTC in the past week.

According to Glassnode, LTHs are those who have held BTC for 155 days or more, while STHs have held for less than that period. Since March, LTHs have added more than 250,000 BTC to their holdings, bringing their total to over 14 million BTC.

“These movements suggest growing confidence in the market, with accumulation pressures now outweighing selling tendencies,” noted Glassnode in its report.

Although typically counteracting LTHs, STHs have also shown renewed confidence, adding more than 25,000 BTC in the last week. This marks a reversal from the more than 200,000 BTC that were sold during Bitcoin’s 30% decline earlier this year.

As Bitcoin approaches the $97,000 level, this broad accumulation points to growing optimism across investor cohorts. However, Glassnode has flagged a major resistance at $99,900, where long-term holders might begin taking profits, having realized a gain of over 350% on their investments.

“With Bitcoin nearing this critical resistance zone, we anticipate an increase in sell-side pressure. To maintain upward momentum, significant buy-side demand will be necessary to absorb the selling,” Glassnode stated.

In summary, while Bitcoin’s accumulation shows increasing investor confidence, the $99,900 resistance level could spark profit-taking, making it an area to watch for potential market volatility.