The latest report by on-chain analysis provider Glassnode has unraveled more details on Bitcoin spending habits that could suggest that market sentiment is still bullish.
Glassnode observed that held coins are beginning to mature, and continued outflows from exchanges demonstrate accumulation is not slowing down.
#Bitcoin held above $50k last week as early signs of coin maturation showed up on-chain.
This week we analyse
– Ageing of coins bought in this bull
– Spending behaviour of old coins
– Deep Dive into Exchange Balances
Read more in The Week On-chain👇https://t.co/2RdKg356eC
— glassnode (@glassnode) March 29, 2021
HODL Waves Getting Bigger
As reported by CryptoPotato, smaller accounts are increasing as ‘stacking sats’ becomes popular for new entrants to Bitcoin and crypto markets. Those that bought before or during the previous bull market in 2017/18 will have taken some profits, but that is now beginning to slow down.
The Glassnode report stated that a lot of BTC are on their way to becoming classified as long-term holder (LTH) coins which are over 155 days old. These are the first signs of a new generation of HODLer, forged in the current bull market of 2020/21.
By analyzing HODL waves, which present a macro view of the age distribution of coins and can offer insights into spending behavior, it found that the volume of Bitcoins with a lifespan between 1 and 6 months has swelled by over 9.5% of the supply. There was a notable acceleration starting three months ago, just as the asset started making new all-time highs.
It added that once a coin ages or has been Hodled beyond 5 to 6 months, it is increasingly likely to remain dormant and is reclassified as a Long term holder (LTH).
“The take home message here is that investors and traders have continued to buy in to BTC, throughout this bull market.”
The research concluded that as coins mature and get older, they are more likely to be held by stronger hands who are not shaken out by price volatility. Analyst Willy Woo reiterated the findings, adding in the ‘Elon Musk effect,’ which has accelerated the tendency to hodl.
Early investors like to take profit by selling their coins (which carry more dormancy) into every rally, then this guy called @elonmusk comes along and decides to buy, now they HODL like the rest of us. pic.twitter.com/npv2bIg7ql
— Willy Woo (@woonomic) March 27, 2021
Bitcoin Price Update
At the time of press, Bitcoin was trading 4.5% higher on the day at $57,650, according to Tradingview. It hit an intraday high of $58,300 and had begun to consolidate a little below that.
There has been no higher high since Bitcoin’s peak price of over $60k on March 13, which could suggest that the market correction is not over yet. In order to confirm the resumption of the uptrend, BTC needs to break the previous high of $59,800 made on March 20.