On-chain analytics provider Santiment revealed more interesting data that may turn into indicators of another bull market for Bitcoin (BTC).
Daily address activity on the Internet has increased significantly since the second quarter of 2020, but it wasn’t until December of that year that the bull market really started. The analysis provider used the observation results of a certified technical analyst “CRYPTO₿IRB”, according to which the increase in daily activities in the on-chain address could indicate that the price level of $60,000 may be broken again soon.
The BTC address activity clearly correlates with the record highs and price trends in January. So if current activity rises again, expect the price to rise.
More HODLs than Sell Offs
Analytics provider Glassnode reported a different dataset that showed that older Bitcoin holders were reluctant to sell them, while the younger ones experienced less volatility in supply than in previous bull market cycles.
It has been pointed out that at the previous peak in Bitcoin price, around 50% of the supply was less than 6 months and is currently well below 36% of that level.
In a bull market, old coins tend to move more. This increases the relative supply of younger coins in the network.
At the previously highest BTC price, around 50% of the #Bitcoin supply was less than 6 months old.
During the bull market, coins that are more than six months old are often discharged. Especially if they are bought in the bear market phase. However, this metric is decreasing.
Glassnode has observed coins circulating for less than six months compared to the previous bull market cycle. It shows that people holding newer coins are also reluctant to sell them this quickly.
These HODL waves can be used to measure market sentiment as the price is in the high $50,000 range. However, market sentiment is still overwhelmingly bullish.
BTC Price Outlook
At the time of going to press, Bitcoin is trading at $57,600. According to data from Tradingview, the asset hit $59,800 over the weekend on Saturday, March 20, but fell to an intraday low of $56,000 on Sunday.
Over the past ten days, BTC has maintained several fluctuations. However, it needs to break through $60,000 again to hit new highs. On the flip side, there is support in the $54,000 area but has remained above that level for the past five days.
