Bitcoin (BTC-USD) has gained 4.5% in the past week, now trading at $27,602

Bitcoin’s price has seen a notable rise in the past week. The increase has been led in some part by a dynamic between short and long-term bitcoin holders, says an analyst.

Bitcoin (BTC-USD) has gained 4.5% in the past week, now trading at $27,602, as per CoinGecko data.

This is a retreat from a high of $28,500 that was reached on Monday. The early October high marked an important price point that has not been hit since August 17, 2023.

Bitcoin now finds itself in a technical range, staying between the resistance level of $28,500 and the support level of $27,100, CryptoQuant analyst Adam Mourad told Yahoo Finance UK.

The analyst explained the underlying factors that could be at play. He described a market dynamic that has developed between short and long-term bitcoin holders. Mourad referred to on-chain metrics that showed long-term holders acquiring the digital assets that are being sold by short-term holders.

The supply held by short-term holders has plunged to its lowest level in around eight years, a level not seen since November 2015, with a value of 3.8 million bitcoins, Mourad added.

Conversely, the CryptoQuant analyst referred to on-chain data that demonstrated the supply of bitcoin held by long-term holders has reached an all-time peak, sitting at 15.6 million bitcoins.

Mourad said that long-term holders have a deeper belief in the asset and will hold and accumulate the asset. A dynamic that favours price rise.

Long-term holders of bitcoin wait in hopeful expectation that an approval of a spot bitcoin exchange-traded fund by US regulators is forthcoming. A spot bitcoin exchange-traded fund is a financial product that investors hope will open the gateway for mainstream capital to flow into the crypto market.