Are you curious about the current Bitcoin price action? Bitcoin has been consolidating under the $35,000 support level, with the majority of holders maintaining their positions. Data from on-chain analysis indicates that a record high of 88.5% of Bitcoin has remained stationary over the past three months. Despite this consolidation phase, Bitcoin’s upside potential is far from diminished, with a 26% increase since October’s start.
A Dip in Price but a Rise in Investor Confidence
Over the past week, Bitcoin has managed to break the $35,000 barrier multiple times, leading to a profitability surge in numerous BTC wallets. Despite a recent dip below this level, long-term investors remain bullish, as shown by on-chain Bitcoin movement analytics.
An interesting gauge of the current Bitcoin cycle is the HODL Waves metric by Glassnode. HODL Waves are color-coded based on their tenure in wallets, transitioning from red to purple the longer they remain idle. This measure reveals that almost 90% of Bitcoin’s total supply has been idle in the past three months, indicating a strong holding sentiment among investors.
Increasing Number of Long-term Holders
According to data from IntoTheBlock, retail traders are increasingly joining the long-term holder bandwagon, in anticipation of a BTC spot ETF approval by the SEC. Their holding metric shows that the number of addresses holding Bitcoin for over a year has reached an all-time high of 34 million.
Prospects of Spot Bitcoin ETFs Approval
Several factors are bolstering Bitcoin investors’ long-term confidence. One significant factor is the possibility of spot ETF trading in the US. The industry is optimistic about the SEC’s approval of spot Bitcoin ETFs, which could trigger the next bullish run for Bitcoin. An executive at Valkyrie Investments expressed confidence in these ETF applications being approved by the month’s end.
However, QCP Capital in Singapore attributes the recent Bitcoin surge to macro forces, such as the drop in US bond yields, rather than the excitement around spot ETFs. The decrease in bond yields is prompting investors to explore higher-yield investments like Bitcoin.
For now, it seems Bitcoin will remain in a consolidation phase until a catalyst triggers the next rally or buyers re-enter the market. The last time Bitcoin’s supply reached this 88% metric was during a consolidation in late 2022, which saw Bitcoin dip below $20,000. If this consolidation continues, we might see Bitcoin breaking below its current range to reach $30,000.
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