Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin’s price action has done little to reassure investors of its near-term outlook, as the cryptocurrency has largely been caught within the throes of an intense bout of sideways trading over the past couple of weeks.
This has led to the formation of a trading range between $10,200 and $11,200, with buyers and sellers largely reaching an impasse as it trades between these two range boundaries.
The cryptocurrency’s trading volume has been diving lower throughout the course of this consolidation phase, which indicates that traders are moving to the sidelines and awaiting directional clarity before diving into positions.
One bullish fundamental trend that bodes incredibly well for BTC’s macro outlook is the massive percentage of the crypto’s total supply that is controlled by long-term investors.
This trend indicates that a small group of active investors and traders are driving the recent volatility, while the cryptocurrency’s base supply remains dormant.
Bitcoin’s Price Stagnates as Buyers and Sellers Remain Deadlocked
At the time of writing, Bitcoin’s price is trading down just under 1% at its current price of $10,750. This is around where it has been trading throughout the past day, as buyers and sellers have both been unable to catalyze any momentum.
This sideways trading has come about due to the formation of a trading range between $10,600 and $10,800.
While zooming out, the macro range that the benchmark digital asset has been caught within has a lower boundary at $10,200 and an upper boundary at $11,200.
Until either of these levels are surmounted, the cryptocurrency’s outlook remains somewhat unclear, although its ongoing consolidation bout beneath its resistance can be interpreted as slightly bullish.
Vast Majority of BTC’s Supply is Controlled by Long-Term Investors
Analytics platform Glassnode explained in a recent tweet that 63.3% of the total BTC supply has not been moved in over one year. They also note that a shocking 31.4% of the total supply hasn’t been moved in 3+ years.
“Percent of Bitcoin supply that hasn’t moved in… 1+ years: 63.3% (11.7 million BTC) 2+ years: 44.5% (8.2 million BTC) 3+ years: 31.4% (5.8 million BTC).”
Image Courtesy of Glassnode.
This trend is bullish for Bitcoin because it shows that most of its investor base are taking a long-term approach to their holdings and are unlikely to sell into any upwards movements it sees in the near-term.
Featured image from Unsplash. Pricing data from TradingView.
