Long-term Bitcoin (BTC) holders are coming back to life as the price of Bitcoin rises, new analysis confirms.

in a tweet On July 13, Philip Swift, creator of the on-chain data resource LookIntoBitcoin, revealed the classic bull market behavior of “old” BTC investors.

Value Day Destroyed Multiple Times Printing BTC Price Bullish Signal

Bitcoin’s current price cycle may be divided when it comes to how high Bitcoin’s price might go, but one thing is for sure: Hodler’s behavior is the same.

As BTC/USD more than doubles in 2023, on-chain spending velocity rises, indicating profit-taking activity.

Swift uploaded a chart of Value Days to Destroy (VDD) multiple, saying that the current cycle is little different from all previous cycles in this respect.

“Increased on-chain spending volumes indicate where we are in the cycle,” said part of the accompanying Twitter comment.

“History doesn’t repeat itself, but it often rhymes.”

VDD is based on the existing Coin Destroyed Days (CDD) metric, which measures the amount of inactivity each time a certain amount of BTC moves on-chain. It takes CDD data and factors in the current BTC price, then compares the 30-day results to the 365-day average.

“It highlights when older tokens start to enter the market quickly for sale,” Swift explained in the LookIntoBitcoin guide.

“This typically happens when long-term players look to take profits as prices accelerate during a major bull market cycle.”

The VDD multiple is currently at 1.32, slightly below the 2023 peak of 1.37 in April. For Swift, it’s a clear sign of a “phase one bull market.”

Bitcoin VDD Multiple Annotated Charts.Source: Philip Swift/Twitter

reactionCheckmate, chief on-chain analyst at data firm Glassnode, called the discovery “remarkable.”

“The consistency of these cycles is remarkable. Humans respond in the same way when presented with similar stimuli,” he replied.

“It’s really different this time.”

Not Just Bitcoin Diamond Hands

Meanwhile, Glassnode data shows that underline How tempting it is for various holder classes to cash out at current prices.

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Bitcoin Market Value to Realized Value (MVRV) ratios for long-term and short-term holders (LTH and STH, respectively) show that both types of investors have reaped considerable profits.

The total value of LTH tokens (defined as tokens that have been dormant for at least 155 days) is 1.52 times higher than when it was last moved. For STH equivalents, this number is 1.12.

Previously, Cointelegraph has reported on STH’s growing influence on BTC’s price action.

Bitcoin LTH, STH MVRV and BTC/USD charts. Source: Glassnode

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