- Long-term Bitcoin holders resumed accumulation in April after months of heavy selling.
- BTC exchange reserves hit a 16-month low, signaling increased self-custody behavior.
- Market structure shows renewed accumulation despite price hovering near $85,000.
Bitcoin long-term holders (LTH) have shifted back to accumulation mode following months of consistent distribution into market rallies. On-chain data reflects this reversal, with exchange reserves dropping sharply throughout the same period.
Long-Term Holder Supply Confirms Reaccumulation Phase
In an insightful post, CrediBULL mentioned that “LTH has officially begun accumulating $BTC once more” as of April. The post detailed a sustained sell-off from $68,000 to $110,000 as LTH sold into strength. The data shows that this selling trend has ended, with long-term investors now buying into weakness.
The long-term holder supply climbed to over 16 million BTC by October 2024 before dropping below 14.5 million. By January 2025, the distribution was steepest, but the pace slowed by March. A visible increase in supply held began in April, coinciding with renewed accumulation behavior.
Exchange Reserves Mark Lowest Point Since 2023
Data from CryptoQuant shows that BTC exchange reserves dropped from 3.05 million in January 2024 to 2.46 million by April 2025. The decline steepened between October and January, confirmed by a 30-day SMA that followed the same downward slope. During this period, BTC price rose above $100,000 before correcting below $85,000.
Reserves flattened by March, signaling reduced outflows from exchanges, while BTC price showed minimal recovery. This drop in reserves points to increased off-exchange custody among participants. Self-custody trends reflect investor preference for long-term storage rather than active trading.
Market Structure Aligns with Long-Term Accumulation Patterns
The chart shows four distinct phases separated by vertical markers, capturing shifts in supply dynamics and market structure. Accumulation was defined early in 2024, distribution followed through late 2024, and accumulation resumed in Q2 2025. LTH behavior has historically led price trends during such phases.
BTC price hovered near $85,000 in April 2025 while long-term supply increased, revealing a divergence between market sentiment and holder behavior. Exchange reserve lows coincided with stable pricing, suggesting quiet accumulation amid reduced sell-side pressure. The current structure reflects early signals of strategic positioning.
