"BlackRock accumulating, retail investors cutting losses…signal of a Bitcoin (BTC) trend reversal"

An analysis suggests that as global asset manager BlackRock’s Bitcoin (BTC) buying strengthens, a combination of retail investors’ stop-loss selling and reduced selling by long-term holders is easing downward pressure on BTC.

According to cryptocurrency-focused media outlet Cointelegraph on the 8th (local time), BlackRock bought an additional 9,619 BTC (about $878 million) over the past three days, increasing its holdings to 780,400 BTC. This suggests institutional money is once again accumulating BTC with a long-term view.

Meanwhile, over the same period, Binance’s BTC CDD (Coin Days Destroyed) fell to its lowest level since 2017. This means there has been a sharp decline in instances of long-dormant BTC flowing into exchanges, indicating that long-term holders’ willingness to sell is weakening.

On-chain indicators also support this trend. Looking at SOPR (Spent Output Profit Ratio), short-term and new investors are selling at a loss, while long-term holders appear to have halted transactions while still in profit. The NUPL (Net Unrealized Profit/Loss) indicator is hovering around 0.3, a range that, historically, has often appeared before the market enters a recovery phase.

Cointelegraph analyzed that "the current BTC market appears to be entering a gradual trend-reversal phase after a downturn rather than a clear bull market," adding that "if institutional accumulation and long-term holders’ wait-and-see stance continue, a medium-term shift in direction cannot be ruled out."