HODL

Waves

Bitcoin

Spot

A look into the <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-key-juncture-34k/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price action</a> shows a consolidation under the $35,000 support level has resumed, but the majority of holders are holding steady. Onchain data has revealed that the number of Bitcoin unmoved in a 3-month timeframe has reached a record high of 88.5%. The upside potential remains huge despite the ongoing consolidation, as the top crypto is still up by 26% since the beginning of October.
<h2 id="b-btc-price-drops-below-35-000-but-investor-sentiment-remains-bullish-b">BTC Price Drops Below $35,000 But Investor Sentiment Remains Bullish</h2>
Bitcoin managed to push above $35,000 <a href="https://bitcoinist.com/bitcoin-traders-embrace-greed-12-rally-time-sell/" target="_blank" rel="noopener noreferrer nofollow">a few times this week</a>,&nbsp; propelling millions of BTC <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-35000-holder-profitability/#:~:text=Bitcoin%20Surges%20Past%20%2435%2C000%2C%20Flipping,reached%20its%20new%20yearly%20high." target="_blank" rel="noopener noreferrer nofollow">wallets into profitability</a>. The crypto has since <a href="https://www.newsbtc.com/bitcoin-news/113-million-longs-rekt-bitcoin-plunges-back-34000/" target="_blank" rel="noopener noreferrer nofollow">dropped below $35,000</a>, but long-term investors <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-1-35-billion-btc/" target="_blank" rel="noopener noreferrer nofollow">remain optimistic</a>, according to on-chain analytics of Bitcoin movement. One particular metric that speaks a lot about the current Bitcoin cycle is Glassnode’s HODL Waves.
HODL Waves change color based on their age in wallets. Bitcoins start at red immediately after they’re transferred into wallets and gradually transition to purple as they continue to remain unmoved.&nbsp;
This metric, which tracks the age of Bitcoins on the move and on wallets, has shown almost 90% of BTC total supply has remained idle in the past three months.&nbsp;
<blockquote class="twitter-tweet">
 The hilarious thing is that 88.5% of the <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#bitcoin</a> supply hasn’t moved in the last three months.
 Wall Street is gonna have to really pump this thing to get hodlers to part with their coins. <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a> <a href="https://t.co/CtD7GoA9ka" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/CtD7GoA9ka</a>
 — Dylan LeClair <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e0.png" alt="🟠" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@DylanLeClair_) <a href="https://twitter.com/DylanLeClair_/status/1720100117238469016?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 2, 2023</a>
</blockquote>
A similar metric from IntoTheBlock has shown retail traders joining the long-term holder bandwagon as investors start to hold on to their assets in the prospect of a BTC spot ETF approval by the SEC. IntoTheBlock’s holding metric puts the number of addresses holding Bitcoin for more than one year at an all-time high of 34 million addresses.
<h2 id="b-investors-anticipate-sec-approval-of-spot-bitcoin-etfs-b">Investors Anticipate SEC Approval Of Spot Bitcoin ETFs</h2>
Several factors have contributed to the increase in long-term confidence of Bitcoin investors, one of which is the commencement of a spot ETF trading in the US. The industry expects the SEC’s approval of spot Bitcoin ETFs to <a href="https://bitcoinist.com/bitcoin-demand-set-to-soar-10-fold-michael-saylor/" target="_blank" rel="noopener noreferrer nofollow">ignite the next bullish run</a> for the price of Bitcoin. A top executive at Valkyrie Investments <a href="https://bitcoinist.com/valkyrie-cio-spot-bitcoin-etf-approval-end-month/" target="_blank" rel="noopener noreferrer nofollow">is very confident</a> these ETF applications will be approved by the end of the month.
However, Singapore-based QCP Capital <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-rally-not-etf-driven-qcp/" target="_blank" rel="noopener noreferrer nofollow">attributed the recent spike in Bitcoin</a> to macro forces like the <a href="https://www.newsbtc.com/news/us-policy-endgame-bitcoin-crypto/" target="_blank" rel="noopener noreferrer nofollow">drop in US bond yields</a>, not the excitement around spot ETFs. Low bond yields force investors to look into higher-yield investments like BTC.
Overall, Bitcoin looks to remain in a consolidation phase until buyers step back in or some catalyst drives the next rally. The last time Bitcoin’s supply reached 88% for this metric was during a consolidation in late 2022, where bears got the better and Bitcoin dipped below $20,000. A continued consolidation could see Bitcoin follow this pattern, breaking below its current range to reach $30,000.
Featured image from Shutterstock

Bitcoin Falls Under $35,000 But 86% Of Supply Remains Unmoved – Temporary Setback?

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