Many market indicators show that long-term holders and a large part of the short-term holder cohort are currently in a HODL phase.
The latest edition of the weekly market report from cryptocurrency exchange Bitfinex revealed that bitcoin reserves on centralized exchanges have plunged further to levels last seen in early January 2018., only 2.03 million BTC currently sits on exchanges. Bitfinex noticed a correlation between the slump in exchange reserves and increased crypto prices, suggesting that the market may be in for a bull run.
As crypto prices increased, exchange reserves continued to decline, implying that the scarcity of BTC on trading platforms may be the force behind the price movement. However, the BTC price dip in November 2021 and the continued decrease in exchange reserves challenged the relationship, showing that investors also tend to hold less BTC on exchanges during bear markets.
Nevertheless, many market indicators show that long-term holders and a large part of the short-term investor cohort are currently in a HODL phase and are positioned to hold their assets for longer periods.The 12-18-month supply holders are currently in a position to make a profit on some of their holdings, but long-term and short-term holder supply hasinactive.
Notably, Bitfinex analysts found that a green October has succeeded the three occasions where BTC ended September on a positive note. October has also been a month where BTC“Crucially, we’ve closed September in the green, a rare occurrence. Historically, a positive September ushers in a bullish October, and the volatility as well as the futures market metrics all point towards increased volatility and some upside, at least on the higher time frames,” said the analysts.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coinbase Will Delist a Massive 80 Trading Pairs on October 16thSome of the affected pairs are ACH-USDT, BNT-BTC, SUSHI-BTC, SUSHI-ETH, ZRX-BTC, ZRX-EUR, and others.
Read more »
Bitcoin (BTC) Price in October Foreshadowed by This Historical PatternExpectations rise as Bitcoin closes first green September in seven years
Read more »
FTX Exploiter Bridges $8M in Ethereum (ETH) to Bitcoin (BTC)$8 million in Ethereum gets transferred on the verge of founder Sam Bankman-Fried's impending trial
Read more »
Bitcoin & Ethereum Jump: BTC/USD & ETH/USD Price ActionThe break above minor resistance in Bitcoin and Ethereum has reduced some of the immediate downside risks. Can cryptocurrencies sustain gains? What is the outlook and what are the key levels to watch?
Read more »
BTC price hits ‘Uptober’ up 5% — 5 things to know in Bitcoin this weekBitcoin charges into Uptober with five BTC price triggers lining up for the coming week.
Read more »