While the cryptocurrency market correction still continues with no signs of a recovery or rebound, selling pressure on the market increases with each day. But there is a specific group of crypto investors that are holding their coins until the end; here's who they are.
Mid-term crypto holders
As data from Glassnode analytics suggests, the number of investors that have held Bitcoin for approximately 1-2 years has reached an all-time high, with 2,681,297 of such addresses.
? #Bitcoin $BTC Amount of Supply Last Active 1y-2y (1d MA) just reached a 13-month high of 2,681,560.795 BTC
— glassnode alerts (@glassnodealerts) January 19, 2022
Previous 13-month high of 2,681,297.367 BTC was observed on 17 January 2022
View metric:https://t.co/KyZxmV0H09 pic.twitter.com/Muc5AIcdtQ
The all-time high in the number of such wallets has been updated numerous times during the month. The metric indicates that the peak of buying power on Bitcoin peaked back in 2020-2021 when the cryptocurrency was actively consolidating below 2017's ATH of $21,000.
Why is selling pressure nonexistent on such addresses?
The main reason behind the inactivity of holders that purchased into Bitcoin between 2020 and 2021 is most likely tied to the average entry price of such wallets. According to on-chain and market data, the largest selling pressure appears on the market after the price of an asset drops below or is directly at the value that has previously faced the largest buying volumes.
Traders tend to capitulate from the asset as they drop below the entry price, or if they missed their opportunity to break even on the downward movement, they might try to sell again as the asset rebounds back to the entry point.
At press time, Bitcoin is trading at $41,440—approximately $1,000 above the lowest point in the year. The cryptocurrency has failed to recover as the price failed to break through $45,000.
Yuri Molchan
Gamza Khanzadaev