Bitcoin Could Be Ready For ‘Phase 2’ Of This Historical Bull Pattern 📈

On-chain data suggests that Bitcoin could be following a pattern similar to a previous cycle, potentially indicating the start of a second phase in its bull run. An analyst's CryptoQuant post notes how recent trends in the Bitcoin long-term holder supply resemble those observed in the 2017 cycle.

Long-term holders (LTHs) are categorized by holding time, distinct from short-term holders (STHs), with a 155-day cutoff. Statistically, as holding time increases, the likelihood of selling decreases, suggesting LTHs are more resolute participants.

The chart highlights a sharp decline in LTH supply during the year's initial rally, mirroring 2017's first distribution phase. This was followed by accumulation and a second distribution phase in 2017.

Current data suggests the latest rebound in LTH supply might mark the beginning of the second distribution phase this cycle, fostering fresh capital inflow and redistribution.

Furthermore, the Bitcoin Binary Coin Days Destroyed (CDD) metric aligns with this similarity, suggesting a second breakout possibly leading to another bull run, akin to 2021.