Bitcoin Diamond Hands Reach New Highs, Preview Before Fresh Rally?
October 07 2021 - 11:15AM
NEWSBTC
With a 31.6% profit in the weekly chart, Bitcoin has been retaking
his mantle as the king of the crypto market during the past days.
The first cryptocurrency by market cap has been moving to the
upside with a strong conviction and seem poised to retake its
previous highs. Related Reading | How 90-Year Old Market
Wizardry Predicted The Bitcoin Breakout At the time of writing,
Bitcoin trades at $54,659 with a 1% profit in the daily chart.
During this period, BTC’s price was rejected as it entered the
mid-area around its current levels. In support of the bulls,
Glassnode records an increase in the number of BTC investors with
“diamond hands” or less inclined to take profits on sudden moves.
This metric now stands at an 80.5% of the Bitcoin total circulating
supply. In that sense, 71.1% of the Bitcoin long term holders are
in profit as BTC moved back into the $50,000, with a 9.4% at a loss
and a 19.5% of the circulating supply in control of short-term
holders. The latter are comprised of those investors who took a
position in BTC in the past 3 months. As seen below, Bitcoin has
managed to climb to an all-time high in every previous bull market
when the number of long-term holders reached or surpassed 54%. At
its peak in 2021, when the price of Bitcoin touched the $64,000,
Glassnode records a long-term holder’s percentage of 67.7%. In
combination with the low percentage of short-term holders, there
seems to be enough evidence to suggest a continuation in the upward
trend. Related Reading | Does Surging Crypto Market Greed
Point To Another Bitcoin Correction? Further data provided by
Glassnode indicates a rise in the number of BTC purchase by
long-term holders since March 2021. During this period, long-term
holders added over 2.35 million BTC to their addresses. In
contrast, only 180,000 Bitcoin (BTC) were issued by miners.
Therefore, long-term holders added 13x more BTC than those produced
by this sector. Bitcoin Fundamentals Favor The Bulls Additional
data provided by CryptoQuant noted a reduction in the supply of
Bitcoin held by crypto exchange platforms. This metric has dropped
to a 1-year low, as seen in the upcoming chart. During this period,
the chart shows a direct correlation between the price of BTC and
its supply across exchange platforms. Related Reading
| Bitcoin Inflows Shows Institutional Investors Are Back On
The Bull Train However, CryptoQuant also notes almost no variation
in the stablecoin supply ratio. On a decline since May 2021, this
metric is used to measure the demand on the crypto market. As the
chart shows, BTC’s price took important hits when the stablecoin
supply ratio dropped in March until the end of July when an uptick
coincided with Bitcoin moving away from its previous range in the
$30,000. If the bulls are to have a serious chance at retaking its
previous all-time highs, the stablecoin supply ratio needs to get
back at the yearly open levels.
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