On-chain information from Glassnode reveals that long-term BTC holders are withholding from selling their BTC holdings. The data from Glassnode indicated that the amount of BTC that was seen active last time two years ago has hit a record low of 45.364% on a three-month range.
The trend of the data also shows that BTC HODlers purchased the digital asset around the previous bullish run in 2018, and they had a very deep assurance though BTC consolidates somewhere around $55,000. More amazingly, the spike in that data means that they got rid of their holdings after the break-even around the $20,000 price mark or the initial ATH in 2017.
Analysis of BTC Consolidation with such low volatility bullish
The correction of BTC price happens when holders who have been holding it sell off very expeditiously. Looking at the previous bullish cycles, the selling from the HODlers that are taking profits has caused the rapid 50% drop and has caused the whole crypto market to retire strongly in a very short time.
There was, however, a coincidence with the fact that the HODlers are keeping a reasonable amount of Bitcoin, which shows that it will be difficult to reach the top of the chart in a long while.
Traders and investors are quite optimistic as there was a stabilized price around the $55,000 mark for two major reasons. The first of it is that BTC has built stature in the market against diverse headwinds. The second reason is that BTC consolidation right under an ATH is a positive and optimistic sign technically.
There could have been a catalyzed downturn for a short while based on the threats Bitcoin has faced in the last two weeks. One of them is the surge in the United States treasury, which often causes a drop-off for all tech stocks and an eventual negative effect in all the risk-on markets.
To cap it all, the CEO of CryptoQuant, Ki Ju Young, said, miners are withholding a significant number of BTC these days, and as a matter of fact, the BTC sold by miners is very low compared to the previous retracement this year. This means that the miners are expecting a higher price before letting go of their coin.