- Bitcoin HODLing hit a 12-month high, indicating healthy accumulation.
- Upside is still limited given weak whale and institutional demand.
It’s been a while since Bitcoin [BTC] delivered a remarkable performance. If you’re like most crypto enthusiasts, you’re probably wondering if BTC will offer a payback in 2023, or maybe even this month. Well, if you happen to be in this camp, here are a few things to consider.
Read Bitcoins [BTC] Price forecast 2023-2024
What would it take for bitcoin bulls to show strong? Well, one of the answers is that long-term HODLing would have to be dominant. The good news in this regard is that Glassnode Alerts have revealed that Bitcoin supply for the last active 2-3 years is now at a 12-month high. In other words, the number of addresses hosting their BTC is increasing.
📈 #Bitcoin $BTC Amount of Supply Last Active 2y-3y (1d MA) just hit a 1-year high of 1,668,534.379 BTC
View metric: https://t.co/ov1FrjgNQz pic.twitter.com/JdcwR8UNQi
— Glassnode Alerts (@glassnodealerts) January 4, 2023
But the amount hoarded within that 1-year period accounts for approximately 0.02% of the Bitcoin supply. This means the potential impact of this hodl is minimal, although it could provide significant cushioning against the underside.
Can whales and institutional activity foot the bill?
With the amount of BTC hodling being too small to drive the price higher, the next key consideration for the bulls is whale and institutional demand. An assessment of Bitcoin’s supply distribution shows a mixed bag as far as whale addresses go. Some addresses contribute to buying pressure while others contribute to selling pressure.
Source: Santiment
Selling pressure came from the largest address categories in December. Addresses with more than 100,000 BTC were dormant this week, but those with 100-1,000 BTC and 10,000-100,000 BTC added to the selling pressure. Those in the 10 to 100 and 1,000 to 10,000 purchased in the last 24 hours at press time.
Also of note is that smaller addresses (the retail segment) bought. Another interesting observation is that institutional demand is still missing. The Purpose Bitcoin ETF Holdings has offloaded its BTC for the past four weeks, adding to the selling pressure.
Source: Glassnode
How many BTCs can you get for $1?
The above observations suggest that retail accumulation is supporting the current price level. Additionally, bitcoin exchange reserves have been growing over the past four weeks, consistent with the selling pressure observed by whales. Demand for derivatives for BTC also increased slightly, as did leverage.
Source: CryptoQuant
The higher estimated leverage ratio suggests that we could see a return of volatility over the next few days. But it’s still too early to tell if it will be bullish or bearish volatility.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.