Bitcoin long-term holders retreat from selling as dormant coins signal early bull market phase

CryptoQuant data shows the percentage of Bitcoin's realized cap involving coins dormant for 18 months or longer has declined from 26.98% to 26.59% since mid-September. Historical patterns indicate that reduced onchain activity among long-term holders has preceded previous bull markets. Coins inactive for at least five years now account for roughly 34,000 BTC in monthly onchain volume, half the level seen in 2024. The market is witnessing the early stages of a bullish cycle, with Bitcoin's price remaining above the cost basis of the 18-month to two-year holder cohort.