Bitcoin HODLers are not selling: Idle BTC supply hits a 3-month low

The Bitcoin offering, which has not moved for more than two years, has reached a 3-month low, indicating the long-term conviction of the HODLers.

Bitcoin (BTC) HODLers have long been refraining from selling their holdings, Glassnode on-chain data shows.

According to Glassnode’s “BTC Percent Supply Last Active 2+ Years” indicator, Bitcoin that last moved more than two years ago hit a three-month low at 45.364%.

This trend indicates that Bitcoin HODLers who bought at the top of the last bull cycle in 2018 and earlier are showing deeper conviction as BTC consolidates above $ 55,000.

Why is Bitcoin consolidating with low bullish volatility?

Bitcoin generally outperforms or sees a severe correction when long-time holders start selling quickly.

In previous bull cycles, the sale of HODLers taking profits from their positions led to rapid drops of 50%, leading the entire cryptocurrency market to retreat sharply in short periods.

This trend coincides with the fact that HODLers are not selling a significant amount of BTC, indicating that the ceiling could still be far from being reached.

For Bitcoin to stabilize around $ 55,000 is highly bullish for two main reasons. First, BTC has maintained a strong market structure despite some headwinds. Second, the fact that BTC is consolidating near an all-time high is technically a positive sign.

In the past two weeks, Bitcoin has faced significant threats that could have catalyzed a serious short-term slide.

Specifically, US Treasury yields increased. This often causes technology stocks to fall, negatively affecting all risk markets.

On top of this, as CryptoQuant CEO Ki Young Ju explained, miners are holding onto a large amount of Bitcoin that they have not sold in recent months. In fact, the amount of BTC moved by miners was significantly less compared to earlier pullbacks this year. This may suggest that miners are expecting higher prices in the future.

On March 17, Ki also pointed to three other factors based on chain trends that could contribute to a stalling of Bitcoin’s uptrend. He wrote at the time:

“I think it would take some time for USDBTC to get another leg to the upside in terms of demand / supply. 1 / Too many USDBTC holdings in USD compared to stablecoin holdings on spot exchanges. 2 / BTC’s market capitalization is too big to get another raise leveraging only stablecoin market capitalization. No significant USD spot inflows, Neutral Coinbase Premium, and negative GBTC Premium, QBTC. “

Despite the aforementioned risks, Bitcoin has performed relatively well, avoiding a drop below $ 50,000.

Has BTC bottomed out?

Well-known anonymous traders, including “Rekt Capital”, have said that, in the next few days, there could be enough confirmation that a Bitcoin fund could be formed.

It is difficult to predict when the exact bottom will form, but if BTC holds above $ 55,000 for a few days and prints a “higher low” formation, the trader said a new rally could occur.

He wrote: “You will never really know when the actual #BTC bottom of the pullback is. But you can look for ways how a potential bottom could be confirmed. If USDBTC forms a higher low in the next few days, that should be sufficient confirmation that the bottom is in. “

Therefore, as long as the price of Bitcoin stays above $ 55,000 in the short term, the lower formation would be intact when the market enters in April, a historically bullish month that has not closed in the red since 2015.

Reference: es.cointelegraph.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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