BTC Supply, Last Active in Two to Three Years, Reaches a Two-year High Amid Consolidation

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Last Updated on May 15, 2023 by Bitfinsider

The measure was initially brought to the public’s attention by Glassnode, in a tweet today. The amount of bitcoin that has been inactive for the past two to three years as of right now is 2.848 million BTC, the largest number since 2021, according to data from Glassnode.

The reduction in this statistic in the beginning of 2022, when BTC fell from its record high of $68,789 to below $40,000, was depicted in a chart released by Glassnode. The indicator saw sporadic falls throughout 2022, but at the start of this year, following bitcoin’s recovery campaign, it started to rise.

It has risen steadily since January to its current value of 2.848 million BTC, or 14.7% of the total amount of bitcoin in circulation. This indicator shows that more BTC holders keep their tokens for longer periods of time, usually for investment motives.

Additionally, information on Long-term Holders’ (LTHs) movement in bitcoin points to a bullish tendency. Notably, the BTC Binary CDD indicator shows that long-term asset holders have comparatively minimal on-chain activity. This demonstrates that LTHs are still clinging to their tokens right now.

Despite bitcoin’s prolonged consolidation below the $29,000 price level, this positive trend has continued. In order to protect against additional drops, Bitcoin struggled to maintain its position above the $29,000 level during the final week of April.

After the first week of May, nevertheless, the asset succumbed to the bears due to worries about high transaction fees brought on by network congestion. A 2-month low of $25,899 was eventually reached by BTC on May 12. The asset saw its worst loss trend since June 2022, eight daily losing candles in a row from May 6 to May 13.

The asset is trying to rebound; it has increased by 2.12% over the last 24 hours and is now worth $27,418 as of the time of reporting. BTC must get past the critical resistance levels at $27,500 and $28,100 in order to reclaim $29,000. The bulls should have enough support if they can secure these points to go for $29,000.

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