Bitcoin’s price has been rallying and hitting milestones with each passing day. And this trend is in no mood to stop anytime soon. As noted by Bitcoin proponent and famous statistician Willy Woo the buying has been driven by market participants who are long-term holders of the crypto-asset.
He further added,
“This is bullish, this rally is far from done. This is the change in Bitcoin’s supply moving between participants. When more coins move from liquid (active traders) to the illiquid (HODLers), it’s bullish.”
As prices soared, the anticipation for a significant correction in the crypto-asset’s continued to lurk. Factors such as the present market momentum as well as the participation from key institutional players are important. Hence, the coin could potentially be able to hold its price above the $30,000-level which has turned out to be crucial support for the coin.
Its market cap only recently soared above $600 billion for the very first time. While it may seem like Bitcoin was accelerating at a much faster pace than it did in 2017, there’s is more to the actual trend. In fact, the chart below depicted that it had a long way to go to reach the records established back in 2013 and 2017 with regards to rapid increases.
Scenarios for Bitcoin Dump Less Likely
Owing to the rapid institutionalization, the coin’s current cycle has seen massive volume than any other bull cycles in the past 12 years of its existence.
Moreover, the bullish outlook can be further be backed by the Bitcoin Network Momentum chart, which shows that the crypto-asset’s network momentum is still at the time the same level as it was back in late 2020. This essentially signaled that a massive case of liquidation event which followed overflow of sell orders on exchanges seen back in 2018 or last year’s Black Thursday crash may not repeat this year.
Adding to this was Glassnode’s latest analysis in which it claimed that 78% of the Bitcoin supply was not liquid. In which case, a supply-side crisis materializes which, in turn, weakens the crypto-asset’s selling pressure in the market. Hence, a sustained rise of illiquid Bitcoin demonstrates an indication of strong investor hodling sentiment and a potentially bullish signal.