Bitcoin’s booming ‘permanent holder demand’ positions BTC price for $116K

Bitcoin (BTC) has dropped by over 10% since establishing its record high of around $109,355 on Jan. 20. This peak coincided with Donald Trump taking office, marking 60% gains since his election victory in November.

Onchain data suggests that Bitcoin’s next leg higher could be imminent despite BTC being stuck below $100,000.

Bitcoin’s “Permanent Holder Demand” grows

According to on-chain analytics platform CryptoQuant, Bitcoin’s Permanent Holder Demand, a metric tracking accumulation from long-term investors, has skyrocketed in recent months.

The trend aligns with Bitcoin’s price increase from around $67,500 in November 2024 to its record highs in early 2025.

Accumulator addresses, primarily belonging to investors who rarely sell, have significantly increased their BTC holdings, CryptoQuant data shows.

Historically, past spikes in permanent holder demand have often been followed by an almost equal degree of decline, indicating that many of these so-called “strong hands” ultimately become sellers within a month after accumulating Bitcoin.

This pattern has been particularly noticeable in prior bull runs, where aggressive buying eventually gives way to distribution.

However, what makes the current uptrend unique is that the accumulator address demand—both on a daily basis and its 30-day moving average—has not reverted to pre-Trump levels, even after its recent decline from peak accumulation levels.

Instead, the demand has recovered even during early February’s correction, suggesting that long-term holders are maintaining their conviction in Bitcoin, with fewer selling compared to previous cycles.

Trump’s potential strategic Bitcoin reserve in the US and the cryptocurrency’s growth among institutional players (ETFs, government, public-traded companies, funds, etc.) are playing a major role in maintaining the upside momentum.

Bitcoin’s technicals eye $116,000

Bitcoin has been forming a symmetrical triangle pattern, a technical setup that often precedes a sharp breakout in either direction. According to market analyst, Titan of Crypto, the BTC price can break above the triangle’s upper trendline to reach $116,000 eventually.

As a technical analysis rule, the upside target move is measured after adding the maximum distance between the triangle’s upper and lower trendline with the potential breakout point.

Further supporting the bullish outlook, analyst DOM has identified an unprecedented Doji candle formation on the BTC daily chart, signaling market uncertainty akin to trends after the FTX crash in November 2022.

“For the first time in its 15-year history, BTC has three consecutive daily candles where the body made up less than 0.05% of the total candle range (Extreme Doji),” the analyst wrote, adding:

“This signals max indecision and a large move impending.”

As noted, Bitcoin’s previous print of two consecutive extreme Doji candles in November 2022 preceded a 620% recovery rally. Bitcoin could be on the verge of another explosive price move if this historical fractal plays out similarly.

Related: Bitcoin OG sees $700K BTC price, $16K Ethereum in this ‘Valhalla’ cycle

Additionally, Grayscale’s head of research, Zach Pandl, predicts that Bitcoin could hit new all-time highs in Q1 2025, supported by Trump’s policy tailwinds and stable equity markets.

Nonetheless, $80,000 remains an increasingly popular target among analysts in the short term, with investment research firm Bravo Research further noting that such a drop will present traders with “buy the dip” opportunities.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.