Bitcoin’s strong uptrend in previous weeks hasn’t phased its long-term investors, who appear to be keeping out for higher prices before they offload their holdings.
Data reveals that these investors are not yet trading their crypto and are even continuing to their long-term stashes as the crypto’s mid-term outlook lightens.
Their long-term investment strategy is highlighted by market inflows, which have settled amazingly low despite BTC currently remaining around the highest price level it has seen since the summer of 2019.
Considering that this trend continues, it could mean that BTC’s continuous uptrend has the opportunity to spread even considerably, as it may not view any vast influx of trading pressure for quite some time.
Bitcoin Continues Radically Stable Following Latest Rally
Bitcoin’s powerful rally led it up from the lower-$9,000 regions to highs of $11,400 in just over a week.
The majority of these gains occurred beginning of this week when the push through $10,000 quickened and shifted into a full-fledged uptrend.
Even though in months past, all of BTC’s uptrends have been prompted primarily by trading on margin platforms, this newest push higher seems to have been driven by the cryptocurrency’s underlying strength.
An indicator of this is the scarcity of trade inflows that have taken place during this transition.
According to data from analytics platform Glassnode, trade inflows persist throughout their multi-year lows notwithstanding the “V-shaped recovery” that the crypto asset has seen since running its mid-March lows of $3,800.
As seen in the chart below, data also explains that inflows lead to spike right before BTC tips as well as when it reaches a long-term bottom – as seen in July of 2019 and in March of this year.
Due to this metric isn’t trending up yet, it could mean Bitcoin has room to run.
Long-Term BTC Hodlers Remains Calm Notwithstanding High Prices
Another data metric that leads to the fundamental concentration currently underpinning Bitcoin is the scarcity of selling pressure from long-term investors.
Glassnode also contributed insight into this in a recent tweet, emphasizing that current investors are acquiring over 50k BTC every month:
“Despite BTC’s recent surge to $11K, there are currently no signs of weak hands from Long-Term Investors. Bitcoin Hodler net position change remains positive since the end of March, with Hodlers currently accumulating more than 50K BTC each month.”