BTC Price Drops Below $35,000 But Investor Sentiment Remains Bullish
The price of Bitcoin has fallen below the $35,000 support level, but despite this, the majority of holders are holding steady. Onchain data shows that a record high of 88.5% of Bitcoin has remained unmoved in the past three months. This indicates that long-term investors remain optimistic about the future of the cryptocurrency.
HODL Waves Show High Percentage of Idle Bitcoins
One metric that provides insight into the current Bitcoin cycle is Glassnode’s HODL Waves. This metric tracks the age of Bitcoins in wallets and reveals that almost 90% of BTC’s total supply has remained idle in the past three months. The color-coding of the HODL Waves changes based on the age of Bitcoins, with purple indicating that they have not been moved for an extended period.
The hilarious thing is that 88.5% of the #bitcoin 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. $BTC— Dylan LeClair attributed the recent spike in Bitcoin to macro forces like the drop in US bond yields, not the excitement around spot ETFs. Low bond yields force investors to look into higher-yield investments like BTC.
Consolidation Phase and Potential Price Movement
Bitcoin is currently in a consolidation phase and will likely remain in this state until buyers re-enter the market or a catalyst triggers the next rally. Historically, when Bitcoin’s supply reached 88% for this metric during a consolidation phase in late 2022, the price dipped below $20,000. If the consolidation continues, Bitcoin could follow a similar pattern and break below its current range to reach $30,000.
Hot Take: Bitcoin Investors Remain Optimistic Despite Price Drop
Despite the recent drop in price, long-term Bitcoin investors remain optimistic about the cryptocurrency’s future. Onchain data shows that a significant percentage of Bitcoin has remained idle in wallets for the past three months, indicating strong conviction among holders. The ongoing consolidation phase may present an opportunity for buyers to enter the market and drive the next rally. However, if the consolidation continues, there is a possibility of Bitcoin breaking below its current range. Overall, while short-term price movements may be uncertain, the upside potential for Bitcoin remains significant.
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