Prices consolidate during wealth transfers

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Bitcoin is gradually being transferred from experienced long-term holders to new investors. This suggests that the market cycle is at a transition point, according to on-chain analysis.

On-chain analytics provider Glassnode dug into HODL waves to reveal that a transfer of wealth had taken place.

This suggests that the transfer of wealth from experienced holders to new demand is underway, he noted. The firm also said this is a common phenomenon at inflection points in the cycle.

Transitioning to a Bitcoin bull market?

HODL Waves uses on-chain data to display the amount of BTC in circulation grouped into different age bands represented by different colors. They are used to measure what different groups do with their pieces.

The expansion on the chart shows that the 1-day to 3-month band has risen since the bottom of the cycle. Additionally, Glassnode reported an 86% increase from 11.5% to a current value of 21.4%.

Bitcoin HODL waves. Source: Glassnode

Bitcoin analyst Philip Swift predicted that the one-year HODL wave would begin to decline and BTC prices would begin to rise.

Because when new participants (new demand) come in, the HODL’ers who have accumulated at the lowest will start selling to them at higher prices.

Year-long HODL waves. Source: Twitter/@PositiveCrypto

Additionally, Bitcoin prices have now moved above several key long-term indicators. BTC is currently just above the 200-week moving average, which is $25,818, according to Woo Charts. This is an all-time support level that was broken during the cycle bottom in December.

It is also above the realized price of $19,914. This metric is the value of all coins in circulation at the price at which they last moved. It can also be taken as an approximation of what the whole market paid for their coins.

Last week, BeInCrypto reported that greater volatility was expected after a long period of low volumes. However, it has yet to materialize as consolidation continues.

If you want to learn more about the incredible first notable Bitcoin transaction in the real world, check out BeInCrypto’s article on “Bitcoin Pizza Day!”

Bitcoin Price Outlook

BTC prices have risen slightly, but crypto markets are still sideways. The asset was trading at $26,952 at the time of writing, falling from an intraday low of $26,715.

BTC price in USD. Source: BeInCrypto

Support currently sits at $26,200, with levels below $25,000, a price not visited since mid-March. On the upside, Bitcoin would need to break the resistance at $28,000 to see significant gains.

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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