Is Bitcoin Eyeing a Strong Movement amid Hodled Coins Hitting a 5-Year High?

As Bitcoin’s bullish momentum continues, the largest obstacle has been a tightened macroeconomic environment. The leading cryptocurrency is still trading between $18K and $22K.

However, the top cryptocurrency may be on its way to a major movement, according Caue Oliveira. BlockTrends’ chief on-chain analyst explained:

“Bitcoin could be close to a strong movement. Declining historical volatility (7d) may indicate the approach of a new “leg” as current price ranges provide low interest, traders are eager for some change.”

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Source: Glassnode

Oliveira thinks that volatility and diminished interest in the BTC markets might cause some traders to start instigating strong movements so that the status-quo can be altered.

Bitcoin plunged to $18.3K at the bottom on October 13, as U.S. inflation data continued to devastate the market. However, bitcoin’s top cryptocurrency, $19,588, has seen intraday trading gain momentum. CoinMarketCap.

Hodling culture continues tick

The bearish market conditions aren’t stopping Bitcoin hodlers from chasing more coins, despite them being in decline. Market insight provider Glassnode stated:

“Amount of HODLed or Lost Coins just reached a 5-year high of 7,546,093.884 BTC. Previous 5-year high of 7,545,994.018 BTC was observed on 13 October 2022.”

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Source: Glassnode

However, Bitcoin’s balance on the exchanges has declined since then. hitting a 4-year low.

It is indicative of a hodling society that coins are removed from crypto exchanges. The coins are then transferred to cold storage for future speculation or digital wallets.

The number of Bitcoin users is growing, and it is expected that they will reach 1 billion by 2025. Willy Woo is a Bitcoin analyst noted:

“Bitcoin took 6 months to get 1000 users; 5 years to find 1 million users. It now has 300m+ active users, representing 4% of all the world, after 13.8 years since its inception. With current growth rates, it will reach 1 billion users in 3 years. That’s 12% of the world.”

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Source: WillyWoo

IntoTheBlock, a data analytic company, revealed recently that BTC was still held by 42 million addresses despite the bearish market. This is 4.5 times more than it was in 2021. 

Source: Shutterstock

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