Bitcoin (BTC) continues to trade in a downward pressure consolidating around $54,000 levels. However, the world’s largest cryptocurrency valuations stay above $1 trillion and will probably never go below that ever again.
The reason is that the on-chain data shows that long-term holders have been buying the recent dips in the market. Interestingly, as the BTC price has fluctuated between the $53K-$61K levels, Bitcoin Miners have resolved to HODLing instead of selling and booking profits.
#Bitcoin miners are now HODLING more than they’re selling. pic.twitter.com/hRR5ShAC97
— Documenting Bitcoin 📄 (@DocumentingBTC) March 23, 2021
“It is rational for publicly traded #Bitcoin miners to become net purchasers of BTC rather than sellers,” says MicroStrategy CEO Michael Saylor.
On the other hand, the Bitcoin supply at the exchanges continues to fall further. On Tuesday, March 23, nearly $1 billion worth of Bitcoins (BTC) has moved off the Coinbase exchange in what seemed like an institutional purchase. Analysts Willy Woo points out that the exchange outflows suggest that coins have been moving to long-term holders who have a minimal history of selling.
Anyone selling right now is cray cray. Seriously strong long term holders are buying this dip. pic.twitter.com/wVhfMOHaDl
— Willy Woo (@woonomic) March 23, 2021
The recent fall in the ‘Bitcoin (BTC) supply at the exchanges’ coincides with the downfall before the 2017 bull run. Thus, the shortage of supply has always resulted in major price rallies ahead.
Bitcoin’s Reserve Risk Present an Attractive Risk/Reward for Buying
On-chain data provider Galssnode states that Bitcoin’s reserve risk is currently sitting at a very comfortable zone of 0.008. During the previous BTC tops, Bitcoin’s reserve risk crossed 0.02 levels. Glassnode notes:
“Reserve Risk indicates a strong conviction of long-term holders at these price levels. The current risk/reward ratio to invest and hodl is still attractive compared to previous $BTC cycle tops”.
Thus, there’s still much gas left in the Bitcoin price rally. Analysts are already predicting Bitcoin to touch $100K levels by the end of the year. On the other hand, another bullish indicator is that the aggregated open interest for Bitcoin (BTC) price continues to stay above $20 billion.
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Source: https://coingape.com/bitcoin-miners-prefer-hodling-over-selling-btcs-risk-reward-ratio-attractive-at-current-price/
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