Bitcoin Holders are Injecting Bullish Pressure into the Market

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$BTC

“The net positions of BTC HODLs is a strong indicator of how longer-term investors are thinking about BTC.”

Bitcoin supply held by long-term HOLDs has increased from 11-M to more than 11.6-M in the past few wks.

While holders are now injecting Bullish pressure into the market, that does not necessarily imply a sharp rally. Past data show Bullish trends mostly pick up the pace after sustained accumulation by holders.

For example: the indicator remained positive for most of Y 2018, which was a negative year for Bitcoin, and early Y 2019, when the cryptocurrency remained sidelined below $5,000. Bullish mood returned to the market in Q-2 of Y 2019 driving the cryptocurrency to 13,880 by the end of June.

Bitcoin scaled that peak in October 2020 after a gap of 16 months. During that frame the cryptocurrency was in a Bearish trend, falling from 13,000 to 4,000 between August 2019 and March 2020. Holders were net buyers throughout and during the subsequent recovery, and began distributing coins in November.

It remains to be seen if they will continue to be net buyers over the coming wks and restore market confidence.

Some chart analysts are worried the cryptocurrency could see more selling in the short term because the daily plot shows the 50 and 200-Day SMA are on pace to produce a “death cross” in the next few days.

Investors with a longer-term horizon look to be boosting their bitcoin holdings on calls for a more profound price drop.

“It shows HODLers are buyers here,” Delphi Digital said in its daily market commentary dated on 16 June. “The net positions of BTC HODLers is a strong indicator of how longer-term investors are thinking about BTC.”

Have a happy week, Keep the Faith, the Virus chaos is over, do not be afraid!