A look inside the Bitcoin price action shows that a consolidation below the $35,000 support level has resumed, but the majority of holders remain stable. Onchain data has shown that the number of Bitcoin remaining immobile in a three-month span has reached an all-time high of 88.5%. The upside potential remains huge despite the ongoing consolidation, as the top crypto is still up 26% since early October.
BTC price falls below $35,000, but investor sentiment remains bullish
Bitcoin managed to rise above $35,000 a few times this weekpropelling millions of BTC portfolios in profitability. The crypto has since dropped below $35,000but long-term investors stay optimistic, according to on-chain analytics of Bitcoin movement. A specific metric that says a lot about the current Bitcoin cycle is Glassnode’s HODL Waves.
HODL waves change color based on their age in wallets. Bitcoins start at red immediately after being placed in wallets and gradually move to purple while remaining unmoved.
This metric, which tracks the age of Bitcoins in movement and in wallets, has shown that nearly 90% of the total BTC supply has remained inactive over the past three months.
The hilarious thing is that 88.5% of #bitcoin the offer has not changed in the last three months.
Wall Street is really going to have to pump this thing up to get hodlers to part with their coins. $BTC pic.twitter.com/CtD7GoA9ka
— Dylan LeClair
(@DylanLeClair_) November 2, 2023
A similar measure from IntoTheBlock has shown that retail traders are joining the long-term holder bandwagon as investors begin to hold onto their assets ahead of a BTC spot ETF approval by the SEC. IntoTheBlock’s holding metric puts the number of addresses Bitcoin has been holding for over 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 Spot Bitcoin ETFs
Several factors have contributed to the increase in long-term Bitcoin investor confidence, including the start of spot ETF trading in the US. The industry expects the SEC to approve spot Bitcoin ETFs ignite the next bullish run for the price of Bitcoin. A top manager at Valkyrie Investments has a lot of confidence in it these ETF applications will be approved by the end of the month.
However, Singapore-based QCP Capital attributed the recent spike in Bitcoin to macro forces such as the decline in US bond yields, not the excitement around spot ETFs. Low bond yields are forcing investors to look at higher-yield investments such as BTC.
Overall, Bitcoin appears to remain in a consolidation phase until buyers take a step back or a catalyst drives the next rally. The last time Bitcoin supply reached 88% for this measure was during a consolidation in late 2022, when the bears got better and Bitcoin fell below $20,000. Continued consolidation could see Bitcoin follow this pattern and break below the current range to reach $30,000.
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