New Bitcoin rally? Investors keep more than 60% of bitcoins “hodl”

This May 29, the cryptocurrency analysis company GlassNode published data that seems to reveal a possible rally indicator in Bitcoin prices. 

The publication was made through the official GlassNode Twitter account. Where it is stated that around 60% of the current Bitcoin supply has not moved for at least 12 months. Which can be taken as a very similar indicator to that detected in 2017. When the rally in Bitcoin prices led the bull market to exceed $20.000 per unit of this cryptocurrency.

According to studies carried out by specialists, the exponential increase in the value of Bitcoin in 2017 was accompanied by the “holding” investment strategy and behavior. A behavior that, according to the analysis company, is being seen again in current Bitcoin investors.  

Prior to the third Bitcoin halving, which occurred on May 11 in the afternoon, the cryptocurrency presented a bullish rally trend. Which led it to grow by more than 15%. Going from $8.628 to $9.979 per unit in just a few days. Although it subsequently suffered a correction, falling to $8.579 per unit on halving day. While at the date of this publication it remains around $9.550 per unit again. 

It may interest you: Javier Pastor explains What does the third Bitcoin Halving mean for users and investors?

Analysis of Bitcoin Statistical Data

During the second Bitcoin halving, which occurred in 2016, the price of the cryptocurrency remained around $1.000 per unit. However, By December 2017 this reached $20.000. A historical maximum that to date has not been surpassed. And it put on everyone's lips the great potential that cryptocurrency has worldwide. 

Learn with Bit2Me: Know the historical prices of Bitcoin from its creation to the present

One of the aspects that are related to this increase in the value of Bitcoin is the holding behavior of investors. According to the analysis carried out by GlassNode, since 2010 Bitcoin investors had been keeping their cryptocurrencies static in a no-movement investment methodology known as “hold”. But in 2018, around 20% of these investors began to make use of their assets. Something that the company boasts coincided with the collapse of the price of Bitcoin, which went from $20.000 to about $5.000 and $6.000 on average per unit. 

The analysis company GlasNode relies on this data to presume that the behavior seen in investors today bears a lot of resemblance to the patterns of 2017. And that they may precede a new rally in the cryptocurrency, which may be bullish to raise its value exponentially. 

Other aspects related to the Bitcoin rally

However, it is important to point out other aspects related to the growth of Bitcoin. For example, the hashrate that the network enjoyed at that time. 

Throughout 2017 the hash power of the Bitcoin network remained constant. Therefore, many investors were attracted to implement cryptocurrency mining activity. Making large investments in computer equipment to generate income passively. 

Furthermore, at the end of that year, the launch of the team 9TH Antminer S14 further facilitated and optimized mining activity. So the growth in the value of the cryptocurrency and the profitability of mining were in line with each other. 

Likewise, at the beginning of May, a study carried out by another analysis company, skew, shows that Bitcoin operations have become mostly organic and cash. Which can also help form a solid foundation for the next rally in Bitcoin. 

Current cryptocurrency scenario

Between 2018 and the first half of 2019, Bitcoin remained at a price between $3.000 and $5.000 per unit. Although a bullish rally began in early July 2019, when Bitcoin reached almost $13.000. However, after this rise, Bitcoin had a correction and remained with a relatively stable price that fluctuated between 7.000 and 8.000 dollars per unit. 

Likewise, at the beginning of 2020 the trend in the value of Bitcoin was bullish. Presenting a minimum between 7.000 dollars and a maximum of 9.000 dollars. But with the arrival of the COVID-19 pandemic, Bitcoin experienced a “Black Friday”-style chapter, where it suffered a resounding drop in value. Going from $8.500 at the end of February to $3.800 at the beginning of March. 

Although in just a few hours Bitcoin was able to recover, and was positioned again around $6.400. An increase of almost 60% in its value, but it was still negative for the crypto community and investors. 

Likewise, during the month of April Bitcoin tried to stabilize. And it presented an upward trend that took it to $9.100 per unit. Although it closed the month again with a price around $6.000. 

In the month of May, a few days before the arrival of the third halving, Bitcoin once again saw an upward trend. Which brought its price up to $10.500 per unit. Although a few days later its price dropped by approximately 20%. And it has remained almost constant between $8500 and $9.500. The latter being the price at which it is currently positioned. 

Bitcoin potential today and in the coming years

The most used cryptocurrency in the world It has many features and potential that guarantee a promising future. This is an aspect on which many specialists in the area are in complete agreement. 

For example, cryptocurrency has a transparent and decentralized operating system. Furthermore, it is a new form of programmable and intelligent digital cash. It is also backed by a technology with incredible properties such as immutability, free access, without borders and based on the consensus of all its participants.

All these aspects ensure Bitcoin a real value that will be consolidated even more as the years go by. 

Continue reading: Bitcoin is definitely the new digital cash