BTC exchange balance hits 4-year low as bitcoin bear market ends, metrics indicate
BTC Exchange
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BTC exchange balance hits 4-year low as bitcoin bear market ends, metrics indicate
If historical "hodled" habits repeat,Bitcoin (BTC) may already be starting its new macro uptrend. This wasthe conclusion from research into the latest data covering the amount ofdormant BTC supply for a year or more as of July 2022.
Hodled BTC signals that the bear market is over, according toindependent analyst Miles Johl, who uploaded the findings to social media onJuly 29. “Hoodled” BTC is in the process of completing a round top formation.Oncethis happens, the price should react - like on many occasions before.
The clue lies in the Bitcoin HODL Waves metric, whichbreaks down the supply according to the last time each bitcoin was moved. Ayear ago or more - the one year HODL wave - currently reflects most of thesupply. Johls chart shows that the higher the ratio of overall supply stablefor at least one year, the closer BTC/USD is to a macro bottom.
More importantly, however, the slowing down of the one-yearHODL wave – indicating that accumulation is calming – followed by a reversalhas always been the start of a new long-term BTC price uptrend. This"round top" chart event is therefore being viewed as a possiblesource of hope as bitcoin is already building up lost ground.
Meanwhile, separate data from on-chain analytics firm Glassnodesheds light on the trend of bitcoin leaving exchanges. BTC in exchange walletsnow accounts for just 12.6% of the total supply, down 4.6% of the total supplysince the March 2020 crash, the employee noted.
In BTC terms, the figure now stands at 2.4 million BTC,compared to 3.15 million BTC in March 2020.This number is the lowest since July2018. Earlier this month, Cointelegraph reported an accelerating trend towardsremoving coins from exchanges.
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