The amount of Bitcoin being held steadfastly by investors is increasing, and the reluctance to sell is rising as well. Furthermore, recent market action has been one of the tightest trading ranges seen in several years.
On May 22, Glassnode, an on-chain analytics provider, reported that large amounts of the Bitcoin supply remain dormant in the wallets of investors. It added that several key age bands were hitting all-time highs.
The narrative of hodling, or holding onto Bitcoin for a long time, is growing, and Bitcoin supply held for longer than a year continues to set new highs.
Bitcoin Holders Resolute
“The remarkable level of hodling across the supply continues, with such high coin inactivity supporting the extreme lows of on-chain volume throughput.”
The chart below shows an increase in hodling across all bands, with the steepest increase in the two-year last active band. These coins were acquired in early 2021 at the outset of the bull market.
Add to this the fact that the supply of long-term holders, or BTC held for more than 155 days, has reached an all-time high of 14.46 million BTC. “This reflects coins acquired immediately after the FTX failure maturing into long-term holding (LTH) status,” Glassnode noted.
Moreover, the Bitcoin liveliness metric, which compares hodling and spending behavior, has fallen to its lowest level since December 2020. This confirms that hodling is currently the dominant market activity.
“Persistent downtrends in Liveliness reaffirm that hodling is certainly the current primary market dynamic across the majority of supply.”
On May 23, Unchained confirmed that Bitcoin is not being moved. It noted that a record-high 68.13% of Bitcoin hasn’t moved in over a year.
Historically, Bitcoin has found a price bottom when sellers have been exhausted, forging the latest wave of long-term holders, according to the report.
Glassnode concluded that these metrics depict a relatively optimistic view of Bitcoin holder conviction. “Most are simply not interested in spending their coins just yet.”
On May 22, Bitrabo reported that market volatility was expected to ensue following a prolonged period of tight price ranges.
BTC Price Outlook
However, that volatility hasn’t materialized yet as BTC is still consolidating. The king of crypto has made a 2.3% gain on the day, moving to $27,283 at the time of writing.
This move keeps BTC within its tight weekly range and will continue to do so unless resistance at $27,600 is overcome.
On the downside, support can be found at $26,600, where Bitcoin has bounced back twice in the past week.
Disclaimer
In accordance with the Trust Project guidelines, this article about price analysis is for information purposes only and should not be regarded as financial or investment advice. Bitrabo is committed to unbiased, accurate reporting, but market conditions can change without notice. Always conduct your own research and seek professional advice prior to making any financial decisions.
