Bitcoin HODLers Showing Conviction That Hasn’t Been Seen Since November 2015
Bitcoin has ended the quarter first of 2020 on a red note with negative 10% returns, and currently, the world’s leading digital currency is trading just above $6,350, down 1.48% in the past 24 hours.
However, the market has started to see a shift.
For starters, the HODL Waves are giving a positive sign as today 15% (2.74 million) of available Bitcoin has been sitting idle for 2-3 years with the price of around $6,300.
The last time this HODL Wave age band represented 15% (2.25 million) of available BTC was in November 2015, when the price of bitcoin was $345, as per Unchained Capital.
This development according to Adamant Capital’s Tuur Demeester is “bullish” because bitcoin “hodlers are showing conviction, just like in 2015.”
A potent shift in sentiment can be seen as the Bitcoin network also grew at a positive rate last week, jumping 45.11% in comparison to the previous week.
As per Glassnode, on an average, a total of 379.69k new addresses versus 318.4k addresses went to zero were recorded last week. Also, total network growth over the past 7 days has been 428.95k addresses.
Crypto data provider Glassnode also noted, “In the weeks after BTC's price drop, most (of the On–chain metrics) have bounced out of or sit in zones that have historically signalled bottoms and good entry points.”
Also, the average size of Bitcoin exchange deposits increased “dramatically.” However, the NetFlow of BTC into exchange remains extremely low compared to historic levels. Bitcoin balance on exchanges has declined by 7%.
While the network is making a recovery, Bitcoin's price has fallen 1.45% in the past 24 hours trading around $6,350.
However, according to Mike Novogratz CEO of Galaxy Digital, this is a buy the dip opportunity because in 2020 with the Federal Reserve printing the money by restarting the QE program, money is growing on trees.