With the broader cryptocurrency market showing signs of recovery after recent lows, on-chain data indicates a growing divergence in behavior between long-term and short-term Bitcoin holders.

Long-term holders (LTHs) of Bitcoin are seen accumulating again after a period of net accumulation, while short-term holders (STHs) are seen selling off their holdings.

According to a report by a CryptoQuant analyst, there is a clear split in behavior between BTC's long-term holders who are now showing positive net accumulation and short-term holders who are selling their holdings, indicating capitulation in response to recent price challenges.

The analyst notes that this discrepancy in behavior could signal the beginning of a re-accumulation phase, where long-term holders are increasing their positions while short-term holders are exiting the market.

Positive indicators on BTC's daily chart, such as the Chaikin Money Flow (CMF) and Aroon Up Line, suggest increasing buying pressure and positive momentum, potentially leading to a bullish breakout.

Currently, BTC is trading above key support levels, with the potential to reach new highs if bullish momentum continues. However, if profit-taking resumes, the bullish outlook may be compromised, leading to a retest of support levels.