The spending activity of Bitcoin's (BTC) long-term holders (LTH) suggests that they are increasingly confident in the leading cryptocurrency. According to recent on-chain data shared by analyst Axel Adler Jr., the spending activity of this group has dropped to its lowest level in the last eight months. Massive 300,000 BTC accumulation Also, this group has purchased 300,000 BTC in the last 20 days. What stands out from the chart in the tweet is the sharp drop in LTHs' spending. It is now at the lower end of its historical range. This trend indicates that those who usually hold Bitcoin for long periods are not selling but are choosing to buy more. In the past, similar behavior by these holders has coincided with bullish periods in the cryptocurrency market. With the long-term holders not selling, there's less available supply of BTC on cryptocurrency exchanges. Should demand remain steady or keep rising, the scarcity results in an increased BTC price. The accumulation of 300,000 BTC by this group of Bitcoin holders in less than a month reflects their long-term outlook and their belief in the leading cryptocurrency's continued rise in price. Many would have expected some of these holders to take profits as BTC climbs back to its previous peak price. But the reverse has been the case. This group, which has experienced multiple market cycles, is doubling down on their holdings. The lower new supply (following the last BTC halving) and the reduction in existing supply is a combination that can push BTC's price higher provided demand remains. The long-term holder cost basis (the average price at which these investors bought their BTC) also acts as a psychological floor. Long-term holders often step in to buy when BTC's price drops near this level to prevent further declines. Bullish BTC signal returns According to new data from Glassnode, the number of unique BTC addresses is showing an upward trend, indicating rising transaction activity and user engagement on the network. The 30-day SMA rose above the 365-day SMA in late 2024, reaching a peak in January 2025. Then, the 30-day average dropped below the 365-day average, suggesting a cool-off period. This crossover usually acts as a bullish signal and occurs when short-term momentum in user activity surpasses the long-term average. In recent weeks, the 30-day average has crossed over the longer-term average again. This new crossover could set the stage for a strong market phase.