Long-Term Holders See $26 Billion Boost During April Recovery

TLDR

Bitcoin long-term holders saw a $26 billion increase in collective wealth as price surged to $94,900
BTC experienced a 30% correction between January and April, consistent with historical market cycles
Short-term holders sold at a loss in early April while long-term holders maintained positions
Bitcoin may consolidate between $94,900 and $88,750 in the coming days
The $100,000 price level is back within striking distance with key overhead resistance at $107,000

Bitcoin long-term holders have increased their collective wealth by $26 billion as the cryptocurrency’s price recovered from what analysts term a “fairly normal” 30% correction. According to data from CryptoQuant, the long-term holders’ realized market cap jumped from $345 billion to $371 billion between April 1 and April 23.

This wealth boost came as Bitcoin’s price surged from $74,450 to $94,900 in April. The increase signals that long-term holders are being rewarded for staying resilient through recent market drawdowns.

Bitcoin’s 30% correction between January and early April follows patterns seen in previous market cycles. Historical data from 2013, 2017, and 2021 shows such drawdowns are typical after Bitcoin reaches new all-time highs.

These corrections often shake out investors with weaker conviction before the upward trend resumes. The pattern has proven reliable across multiple bull market cycles.

Market Dynamics Between Holder Groups

Data reveals contrasting behaviors between different investor groups. While long-term holders maintained their positions during the correction, short-term holders frequently sold at a loss in early April.

This behavior reflects a recurring trend throughout 2024, where short-term holders have sold their Bitcoin to long-term holders during market corrections. The transfer of coins from short-term to long-term holders often precedes new price rallies.

Currently, 16.7 million BTC in various addresses are in profit. This metric has increased above what analysts call the “threshold of optimism.”

Historical data from 2016, 2020, and 2024 indicates that when Bitcoin consistently holds above this key bullish zone, it frequently triggers major bull runs within months.

Technical Outlook and Price Levels

Following its rise to $94,900, Bitcoin may enter a consolidation phase. Cryptocurrency trader and MNCapital founder Michael van de Poppe noted that after a massive breakout, it is “normal to have a slight correction.”

From a technical perspective, Bitcoin may trade between $94,900 and $88,750 in the near term. On the 4-hour chart, key support lies between $90,500 and $88,750, representing a fair value gap.

If prices drop below this range, it could invalidate the lower timeframe bullish structure. This might push prices toward the next support zone between $84,000 and $86,300.

Bitcoin broke out of a four-month falling wedge pattern earlier this month. The price closed above the 200-day moving average in Tuesday’s trading session, though trading volumes remained low.

The relative strength index (RSI) confirms bullish momentum with a reading above 50. It remains below overbought levels, giving the price room to move higher.

Investors should watch the psychological $100,000 area for potential selling pressure. This level connects price action from November through February.

A close above $100,000 could see prices move toward $107,000, near the December and January peaks. This target aligns with the measured move from the falling wedge pattern.

If selling occurs, initial support sits around $85,000 near this month’s breakout point. A deeper pullback might test lower support at $76,000, near a trendline connecting April’s low with post-election prices from November.

Bitcoin, along with other risk assets, has rallied in recent days amid optimism about reduced tariffs. President Trump indicated that levies on China will be “substantially” below the current 145% level.

Market sentiment also improved after the president walked back rhetoric about firing Federal Reserve Chair Jerome Powell. This boosted confidence that the central bank will maintain its independence.

While Bitcoin remains below its January record high of $109,000, it has risen about 25% from its early April 2025 low. Some investors may be turning to the cryptocurrency as an alternative to volatile stocks and a weakening U.S. dollar.

Bitcoin was recently trading at $93,500, putting the closely watched $100,000 level back within striking distance.