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Bitcoin on its way to $32,000 as on-chain data suggests net accumulation

ETFs, Crypto Market

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Cryptocurrency bulls took over the market on Monday, with Bitcoin leading the charge, fighting its way through the $30,000 resistance level it was trading below on Sunday, to now head towards $32,000, a price point not seen in 20 days.

Bitcoin rose over 8%, breaking the $31,000 mark driven by global investors as Asian and European equity markets climbed. American markets were closed for the Memorial Day holiday. The rally in the market can be traced to a weaker dollar, and an on-chain report from Glassnode, which suggested that Bitcoin hodlers are now “the only ones left” and they appear to be “doubling down as prices correct below $30K.”

Marcus Sotiriou, an analyst at digital asset broker, GlobalBlock said in a note on Monday, “Bitcoin broke above $30,000, but it needs to hold the $29,300 level on a retest to suggest continuation to the upside. Relief has been long overdue in the crypto market, as the U.S. stock market already rallied last week, after Jerome Powell’s speech that gave the market clarity on their plans to carry out a soft economic landing.”

What you should know

Long-term Bitcoin holders appear to be the main driving force behind the current price action with some actively accumulating and others realizing losses at an average of -27%. Despite the selling witnessed by some in the long-term holder cohort, the total supply held by these wallets recently returned to its all-time high of 13.048 million BTC.

Glassnode explained, “Unless significant coin redistribution occurs, we can therefore expect this supply metric to commence climbing over the course of the next 3-4 months, suggesting HODLers continue to gradually soak up, and hold onto supply.”

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