- The quantity at addresses increased to 69% of the circulating supply.
- Liquidation heat maps revealed that Bitcoin had some headroom before the next level of selling pressure.
There is a growing consensus around the idea that the next Bitcoin [BTC] rally approaching. There are plenty of signals supporting these expectations, but perhaps one of the most compelling is King Coin’s hodler accumulation data.
How much are 1,10,100 BTCs worth today?
According to a recent IntoTheBlock analysis, the amount of BTC in Bitcoin holders’ accounts has recently been hovering near historic highs. The subject amount is 13.45 million BTC, which represents approximately 69% of Bitcoin’s circulating supply.
The cumulative balance held by $BTC hodlers continues to hover around historic highs, with Bitcoin worth 13.45 million, accounting for around 69% of the circulating supply.
Hodlers are individuals who hold on #Bitcoin for more than a year, accumulating over time.… pic.twitter.com/M8njm22jer
— Slim Dad
𓃵 ₿ (@felixreads) October 20, 2023
So why is the circulating BTC supply from hodlers an important observation? Well, it highlights why Bitcoin has somehow maintained its relative strength as there is still a significant amount of liquidity within the cryptocurrency.
It could also explain why Bitcoin has seemingly maintained confidence above the $25,000 price range.
Will Growing Accumulation Support Bitcoin’s Exit from its Last Cycle?
The increased focus on long-term accumulation may explain why Bitcoin’s price floor is currently higher than it was in early 2023. It has also sparked recent speculation that BTC could be on the verge of a long-term rally.
Nevertheless, it is essential to recognize that Bitcoin has been stuck in a mixed performance since April, supported by support and resistance.
While the support is within the $25,000 price range, the resistance level is just above the $31,000 price level. BTC’s price still has some room for more upside potential at the press time price of $29,769 before retesting the next support level.
Source: TradingView
Bitcoin’s latest performance underlines confidence in its long-term prospects. It could explain the cryptocurrency’s current strength and resilience to short-term selling pressure.
One reason for this confidence is that Bitcoin’s current level is still not within the range where it is susceptible to a surge in selling pressure and liquidations.
Source: Hyblock
It is also worth noting that the next major liquidation level is expected around the $31,000 price level. Additionally, Bitcoin’s Total Addresses recently reached a new all-time high of 1.2 million addresses.
Read Bitcoin’s [BTC] Price forecast 2023-24
In addition to the recent demand, the amount of Open Interest in Bitcoin Futures also rose to a new two-month high at the time of writing.
Source: Glassnode
This reflected the recent burst of bullish demand and underlined the rise in bullish expectations. However, it does suggest that the next liquidation zone could bring significant selling pressure.