Idle bitcoin supply increases, keeping condemnation at high levels

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As the supply of firmly held Bitcoin increases, so does the reluctance to sell. Additionally, recent market action has been one of the tightest trading ranges in years.

On May 22, on-chain analytics provider Glassnode reported that large swathes of Bitcoin supply lay dormant in investors’ wallets. Several key age groups are reaching all-time highs, he added.

The supply of Bitcoin held for more than a year continues to reach new highs as the hodl narrative develops.

Resolute Bitcoin Holders

The remarkable level of HODLing across the offering continues, with such high coin inactivity supporting the extremely low levels of on-chain volume throughput.

The chart below shows an increase in hodling across all bands, with the strongest in the last two-year active band. These were coins accumulated in early 2021 at the start of the bull market.

Bitcoin Offer Latest Activity | glass knot

Additionally, the supply of long-term holders, or BTC held for more than 155 days, reached a new all-time high of 14.46 million BTC. This reflects coins acquired immediately after the failure of FTX that achieved LTH status, Glassnode noted.

Additionally, the Bitcoin liveliness measure, which compares hodling and spending behavior, fell to its lowest level since December 2020. This confirms that hodling is the dominant market activity right now.

Persistent downtrends in liveliness reaffirm that HODLing is certainly the current primary market momentum across the majority of supply.

On May 23, Unchained confirmed the sentiment that Bitcoin was not misplaced. He noted that a Bitcoin high of 68.13% has not budged in over a year.

BTC Hodl Waves Indicator | glass knot

Historically, Bitcoin bottoms out when sellers are exhausted, forging the latest wave of long-term holders, he said.

Glassnode concluded that these metrics provide a relatively constructive view of Bitcoin holder conviction. Most just aren’t interested in spending their coins yet.

On May 22, BeInCrypto signaled that market volatility was imminent after an extended period of tight price ranges.

BTC Price Outlook

However, this volatility has yet to materialize as BTC continues to consolidate. The crypto king gained 2.3% on the day to hit $27,283 at the time of writing.

BTC price in USD 1W – BeInCrypto

The move keeps BTC within its narrow weekly range and will continue to do so unless the resistance at $27,600 is broken.

In contrast, support can be found at $26,600, where Bitcoin has bounced twice in the past week.

Disclaimer

In accordance with Project Trust guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.

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