Look in Bitcoin price movement It appears that consolidation below the $35,000 support level has resumed, but the majority of holders are holding firm. Onchain data revealed that the number of unchanged Bitcoins in a 3-month timeframe has reached a record high of 88.5%. The upside potential remains huge despite the ongoing consolidation, with the top cryptocurrencies still up 26% since the start of October.
BTC price has fallen below $35,000 but investor sentiment remains bullish
Bitcoin managed to cross $35,000 Several times this weekMillions of BTC paid out Conservative to profitability. Cryptocurrency ever since It dropped to less than $35,000But long term investors Remain optimisticAccording to on-chain analyzes of Bitcoin movement. One specific metric that speaks volumes about Bitcoin’s current cycle is Glassnode’s HODL Waves.
HODL waves change color based on their age in the wallet. Bitcoins start red immediately after being transferred to wallets and gradually turn purple as they continue to remain unaffected.
This metric, which tracks the lifespan of bitcoins on the go and on wallets, showed that nearly 90% of the total bitcoin supply has remained idle in the past three months.
The funny thing is that 88.5% of… #Bitcoin The show has not moved in the past three months.
Wall Street is going to have to really pump this thing up to get dealers to dump their coins. $ Bitcoin pic.twitter.com/CtD7GoA9ka
– Dylan LeClair 🟠(@DylanLeClair_) November 2, 2023
A similar metric from IntoTheBlock showed that retail traders are jumping on the long-term coin holder bandwagon as investors begin holding on to their assets in hopes of receiving SEC approval for a spot BTC exchange-traded fund. 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 are anticipating SEC approval for spot bitcoin ETFs
Several factors have contributed to the increase in long-term Bitcoin investor confidence, one of which is the introduction of spot trading for ETFs in the United States. The industry is anticipating SEC approval for spot bitcoin ETFs Ignite the next uptrend For the price of Bitcoin. One of the senior executives at Valkyrie Investments very confident Applications for these ETFs will be approved by the end of the month.
However, Singapore-based QCP Capital Attributing the recent rise in Bitcoin To total forces such as US bond yields fall, not excitement about spot ETFs. Low bond yields are forcing investors to consider high-yielding investments like BTC.
Overall, it looks like Bitcoin will remain in a consolidation phase until buyers pull back or some catalyst drives the next rally. The last time Bitcoin supply reached 88% for this metric was during the consolidation period in late 2022, as 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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