A look at Bitcoin price action shows that a consolidation has resumed below the $35,000 support level, but most holders remain stable. Onchain data has revealed that the amount of immobile Bitcoin in a 3-month period has reached a record high of 88.5%. The upside potential remains huge despite the ongoing consolidation, as the top cryptocurrency is still up 26% since the beginning of October.
BTC Price Falls Below $35,000 But Investor Sentiment Remains Bullish
Bitcoin managed to surpass $35,000 sometimes this weekboosting millions of BTC wallets in profitability. Cryptocurrency since then fell below $35,000but long term investors stay optimistic, according to on-chain analysis of the movement of Bitcoin. One particular metric that speaks volumes about the current Bitcoin cycle is Glassnode HODL waves.
HODL Waves change color depending on your age on wallets. Bitcoins start red immediately after being transferred to wallets and gradually turn purple as they remain stationary.
This metric, which tracks the age of Bitcoins in motion and in wallets, has shown that almost 90% of the total BTC supply has remained idle over the past three months.
The funny thing is that 88.5% of #bitcoin The supply has not moved in the last three months.
—Dylan LeClair 🟠 (@DylanLeClair_) November 2, 2023
A similar metric from IntoTheBlock has shown retail traders joining the bandwagon of long-term holders as investors begin to hold on to their assets amid the prospect of a BTC spot ETF approval from the SEC. IntoTheBlock’s holding metric puts the number of addresses holding Bitcoin for more than a year at an all-time high of 34 million addresses.
BTC market cap currently at $679.499 billion on the daily chart: TradingView.com
Investors Anticipate SEC Approval of Bitcoin Spot ETFs
Several factors have contributed to the rise in long-term confidence of Bitcoin investors, one of which is the start of spot ETF trading in the United States. Industry Awaits SEC Approval of Bitcoin Spot ETFs ignite the next bull run for the price of Bitcoin. A senior executive at Valkyrie Investments he is very confident These ETF applications will be approved at the end of the month.
However, Singapore-based QCP Capital attributed the recent rise in Bitcoin to macro forces such as falling US bond yields, not the excitement around spot ETFs. Low bond yields force investors to look for higher-yielding investments like BTC.
Overall, Bitcoin appears to remain in a consolidation phase until buyers return or some catalyst fuels the next rally. The last time Bitcoin supply reached 88% for this metric was during a consolidation in late 2022, where the bears improved and Bitcoin fell below $20,000. Continued consolidation could see Bitcoin follow this pattern, breaking below its current range to reach $30,000.
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