Bitcoin recovered back above $60k in a swift move earlier today despite languishing below the level for a long time. The largest digital currency by market capitalization fell below the key level earlier this week and remained threatened by short-term bears. However, today’s move weakened the chances of another big bearish pullback in the immediate short-term. The market is also lit up by the recent performances of altcoins especially Terra (LUNA), Shiba Inu(SHIBA) and others and most of the other digital currencies are simply responding to it.
Bitcoin had a healthy recovery earlier today that pulled it out of the slightly bearish area back above the key support-turned resistance of $60k. The cryptocurrency traded largely below $59k for the first half of the day. Yeesterday, at around 10:30 AM in the morning, the index began to rise sharply. First, it went above $60k and then continued on and posted a daily high of $61.7k at 03:30 PM. However, further progress has been hard to come by and the index soon retraced back to $61k and has largely remained there ever since.
Despite Bitcoin hovering around record-high levels, Bitcoin is still being actively HODLed by many traders around the world. So much so that the number of today HODLers has reached a new 9 month high which is almost a calendar year high. Data from reputed on-chain analytics company GlassNode shows that the total number of HODLed or out of circulation Bitcoin have reached a nine-month high of 7.21 million. The company classifies HODLed Bitcoin as lost Bitcoin or simply Bitcoin being held in long-term cold wallets that aren’t being used at all by their creators.
In addition to the HODL data, another big sign of things to come is that the miners are also holding on to their mining returns. The hash rate contributors are now holding on to more and more Bitcoin they have mined as the year outflow from miner public addresses has reduced to 1-year moving averages. For much of 2021, the outflow has been in negative territory due to miners taking profits of high prices. Now, the miners are saving up themselves in big numbers and they only do it when the have real anticipation that the cryptocurrency will go further ahead in value. Otherwise they are sometimes desperate to cash out as they need to pay their power bills and rents.
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