Bitcoin (BTC) recently rose by about 4% due to the impact of the truce announcement, surpassing the price of $71,000.

Amid this rebound, various on-chain indicators suggest that an ‘accumulation phase’ for Bitcoin is being created, analysts explain.

Key Bitcoin indicators suggest that ‘smart money’ is entering.

According to CryptoQuant data, Bitcoin's ‘Active Address Momentum’ has dropped to -0.2, indicating a decrease in participation. This figure is the most extreme since 2018.

“When activity declines like this, we confirm that ‘tourists’—investors who enter with high interest and panic sell, namely the famous short-term holders (STH)—are disappearing. Currently, long-term holders are continuing to accumulate in the network,” the analyst wrote.

The analyst added that similar phases in the past have often coincided with the 'most profitable long-term accumulation bottoms.' In this context, the network's 'silence' indicates that the circulating Bitcoin supply is steadily being absorbed.

“A market with low volatility and speculative trading is ideal for smart money and institutional investors to accumulate in bulk without causing noticeable spikes and drops,” it is stated in the post.

Meanwhile, the Rand Group pointed out that the best buying periods appeared years ago when 80-90% of past Bitcoin capital was in a state of loss.

Follow us on X to receive the latest news in real time.

Finally, Joao Wedson, founder of Alphractal, emphasized that the 720-day Tactical Bull-Bear Sentiment Index (TBBI) has entered an extremely bearish phase.

This long-term indicator tracks psychological cycles over the years, revealing that when retail investor fatigue reaches its peak, the narrative turns completely negative, and smart money begins to absorb supply, it tends to enter this area.

“In this range, there is still room for decline, but the extent is becoming increasingly limited. Even if further declines occur, the scale is likely to be small. There may be a last plunge into fear for the entire market, like a drop of $15,000. However, structurally it appears to be a late fear phase.” – Joao Wedson (founder of Alphractal)

The three indicators show a market where fear has already been significantly alleviated. It is still uncertain when changes will occur in the coming weeks or months.

Subscribe to our YouTube channel to see expert analysis and industry leader opinions.