Bitcoin has been going up in the last few days in the market, which has pushed entities to hold on to their assets. At this present time, not only are the institutional investors holding on to their Bitcoins, but retail traders are hodling. The consensus in the market right now is that the digital asset is going over the top to create another bullish high. Hence the various parties do not want to lose the profit that they can accumulate. With this being the case, no matter what happens, it is very sure that Bitcoin would see a bull run soonest as this is the final recipe it has always needed before a bull run.
Retail traders are also hodling Bitcoin
Over the years, we have seen massive amounts of Bitcoin sold at this point, a point where most short-term traders have accumulated and seen profits. But the most surprising aspect of this period is that despite the profit accrued with Bitcoin crossing over the $60,000, short-term traders choose to hold on to their assets. Long-term traders are not left behind as most of them are always choosing this period to sell and wait for another dip before they invest and hold for another extended period.
To see the real effect of these activities, one must first look at the Hodl waves to better understand. The Hodl waves consider the amount of time that a Bitcoin address holds Bitcoin before the holder eventually chooses to sell it and recoup his profits. These moves are always depicted by colors, and after, they are clustered into term buckets.
In a simpler explanation, a person that holds his Bitcoin for, say, about three months to six months would fall into the light orange color category. If the Bitcoin leaves the wallet, the sale will put the Bitcoin directly in the dark red color category.
Analysts say this move will push Bitcoin higher
The representation shows that the less the holder of the asset holds, the farther it goes into a darker zone. According to historical data, this representation has always seen a movement into a lighter territory during bearish periods and vice versa during bull runs. Bitcoin’s recent sell pattern has shown that selling activities have declined over the last few months, which is understandable because most entities hold on to their assets.
For example, a recent news said that miners are now holding to more Bitcoin than they are selling as the price of the digital asset continues to see a massive rise in the market. Even though Bitcoin is presently in a bearish zone, the digital asset is still doing well on a larger scale.
If this continues, there would be a supply squeeze in the Bitcoin market. Even though this phenomenon has been frowned upon by retail traders, most of them have agreed that this is the catalyst that sends the price of the digital asset over the top.