Analysts point to continuation of Bitcoin’s detox phase

Bitcoin rose past the $20,000 psychological level. Hodlers remain resilient, underpinning a full market detox cycle, Glassnode analysts say.

Experts examined the age bands of spent-value. Such analysis helps gauge the dominance of the “old hands” losing conviction in the viability of hodling.

The share of coins held for more than six months fell to 0.4%. At the height of the bull market in January 2021, the figure stood at 8%. On the basis of this dynamic, experts concluded that long-term investors remain faithful to their strategy, avoiding exits on any meaningful scale.

Such sentiment is corroborated by the realized-cap HODL-waves indicator. To date, the share of speculative wealth in Bitcoin, expressed in USD, has fallen to a historical low.

“Almost all market activity is concentrated in a specific cohort of young coins that have changed hands repeatedly. As supply grows, this could lead to a reduced available supply and a sharp price rise if demand strengthens,” — explained the analysts.

Experts also analysed the price distribution of coins among hodlers and speculators. The resulting picture led them to the following conclusions:

1. Almost all coins purchased above $30,000 transition to long-term holding successfully. There is a low probability that they will be spent amid further volatility.
2. Most of the spendable coins are concentrated near current prices. This reflects both the recent capitulation and an equally sized inflow of demand in the current price range of consolidation.
3. In the range between $11,000–$12,000 and $18,000 there is little meaningful trading activity. A break of the current cycle’s minimum would lead to substantial unrealized losses among speculators. This, in turn, could trigger another broad capitulation.

Bitcoin crossed the $20,000 mark.

Earlier, the leading cryptocurrency reacted with a sharp correction to the Federal Reserve’s key rate hike.

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