Long-term Bitcoin holders have notably increased their positions this week, as pointed by the on-chain expert Will Clemente in the latest edition of The Pomp Letter.

Long-Term Holders Aggressively Accumulating Bitcoin

In the latest issue of The Pomp Letter, crypto analyst, Will Clemente highlights the process of accumulation in the Bitcoin network. Interestingly, strong hands have notably increased their positions this week while adding 120,739 BTC while “young” investors have reduced their holdings by 97,333 BTC.

While the illiquid supply change metric dubbed the “Rick Astley Indicator” is still continuing its trend of strong accumulation since late May that statistically has a very low likelihood of selling.

Similar processes were observed during the bull phase of 2013 and 2016, indicating that the next bullish phase is just around the corner. At the same time, the number of stablecoins available on centralized exchanges also spiked to historic highs that indicate an increased interest in buying.

Bitcoin Correction Shaking Out Weak Hands

Similarly, crypto bull and chief strategy officer at CoinShares Meltem Demirors tells CNBC that Bitcoin’s recent price correction Bitcoin is simply pulling out the investors with “paper hands”:

“We had 200 days of market expansion. You can’t have a number go up forever. That doesn’t happen in any market. What we’re seeing is a correction, a contraction, and a lot of what is getting shaken out is what we call the ‘paper hands,’ the ‘weak hands.’”

Paper hands is a crypto slang to characterize people who sell a digital asset when turbulence strikes the markets. The opposite of them is called diamond hands who are in it for the long term.

According to her, a lot of the recent selling has been from retail traders who bought Bitcoin earlier this year when the cryptocurrency was at its all-time high near $65,000 in April without any further research:

“There’s a lot of retail that entered, didn’t do their research, and is now selling. There are not a lot of long-term holders selling. If we look at on-chain activity, wallets that have been holding for a long time have actually been using this opportunity to accumulate.”