- Bitcoin has been caught in a tight range over the past weeks
- BTC HODLers control 63 percent of BTC’s total supply
- Bitcoin investors are more focused on the long-term than the near term
Bitcoin News Today – The recent price action of Bitcoin (BTC) has been somewhat poor, and it has done very little to reassure investors of its short-term outlook. The digital currency has been trapped within the throes of an intense bout of sideways trading over the past few weeks. This has resulted in the formation of a trading range between $10,200 and $11,200, with sellers and buyers reaching a deadlock as it trades between those tight ranges.
Sellers and Buyers Remain Deadlocked as BTC’s Price Stagnates
The trading volume of Bitcoin has been plunging lower all through the course of this consolidation phase. This means that traders are moving to the sidelines and waiting for directional clarity to dive into positions.
One bullish fundamental trend that seems very good for the macro outlook of Bitcoin is the huge percentage of the total supply of the coin that long-term investors control. This trend shows that a small group of active traders and investors are driving the recent volatility, while the base supply of the digital currency remains dormant.
At press time, the world’s largest digital currency by market cap is changing $10,912, after an increase of less than two percent over the past day. The digital currency has been trading around this range over the past day, as sellers and buyers have both been unable to catalyze any momentum. The sideways trading of the coin is attributed to the formation of a trading range between $10,600 and $10,900.
While zooming out, the macro range that the digital currency has been trapped within an upper boundary at $11,200 and a lower boundary at $10,200. Until any of these marks are conquered, the outlook of the digital currency remains somewhat unclear. However, the ongoing consolidation bout of the digital currency below its hurdle can be interpreted as slightly bullish.
HODLers Control 63% of Bitcoin’s Total Supply
In a recent tweet, Glassnode – an analytics platform – explained that 63.3 percent of the total supply of Bitcoin has not been moved in more than 12 months. The firm also noted that a whopping 31.4 percent of Bitcoin’s total supply has not been moved in more than three 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).”
This is a bullish trend for Bitcoin because it shows that the majority of its investor base is taking a long-term approach to their holdings, and they are not likely to sell into any upwards movement they see in the near term.