Bitcoin (BTC) may be struggling at the $40,000 level, but recent data reinforces the fact that hardly anyone is interested in selling.
Data from on-chain analytics firm Glassnode shows that, despite price volatility, more than 60% of the BTC supply hasn’t left his wallet in a year or more.
Strong hands have rarely been stronger
The stubbornness of long-term investors is a feature that sets the current Bitcoin market climate apart from most other bear trends.
With spot price action trailing 50% losses compared to all-time highs in November last month, expectations were for the previously hesitant to get in on the action, but among seasoned hodlers, the sell-off never came.
In fact, the opposite has been true for an extended period: Long-term investors are adding to their positions or staying on their BTC exposure.
According to Glassnode’s HODL Waves indicator, as of February 18, 60.61% of the BTC supply has not been used in a transaction for a year or more.
The figure is significant: only twice before in Bitcoin’s history has the value of a year or more reached that level.
As businessman and investor Alistair Milne pointed out, both times followed a downtrend and preceded a huge bounce in Bitcoin price action.
There have only been two occasions where 1yr+ HODL’ing of #bitcoin has been higher (currently 61%).
Early 2016, price $380-450 range
Mid-2020, price ~$9000Both times were during a prolonged consolidation before a huge bull move
— Alistair Milne (@alistairmilne) February 18, 2022
There have only been two times where #Bitcoin’s 1yr to + HODL’ing has been higher (currently 61%).
Early 2016, price range USD 380-450
Mid 2020, price ~USD 9,000Both times were during a prolonged consolidation before a big move higher.
As such, An entirely different trend is likely to form for Bitcoin in the medium term, which could challenge the largely gloomy narrative about macroeconomic support, rising interest rates, and geopolitical tensions.
“Long term HODLers wait patiently because they know what is likely to come soon,” added Philip Swift, analyst at trading suite Decentrader, on the data.
Low term moves spell pain for speculators
Short-term trends therefore appear to be of little consequence for most bitcoins in circulation, which nonetheless caused modest anxiety this week.
By monitoring order book activity on major exchange Binance, for example, analytics resource Material Indicators noted that support “rugs” disappeared above $40,000 immediately before Friday’s drop to two-week lows.
As promised here’s an update on how #BTC liquidity is moving. Not sure if the same entity that rugged $13M is the one that added $15M, but pretty confident the one that added is trying to control the short term PA until they get filled.
Be sure to read the for context. https://t.co/9ibMFXixEg pic.twitter.com/JibCwmmnJd
— Material Indicators (@MI_Algos) February 19, 2022
As promised, here’s an update on how #BTC liquidity is moving. I’m not sure if the same entity that raised $13 million is the one that added $15 million, but I’m pretty sure the one that added is trying to control the PA in the short term until it fills up.
Make sure you read the context.
As Cointelegraph also reported, smaller investors have slowed down their hoarding activities over the past week.
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