Bitcoin (BTC) may have failed to reclaim the $60,000 price tag, but under the hood, the on-chain data is quietly aligning in favor of the bulls.
In particular, the percentage of Bitcoin’s circulating supply that was last active on-chain at least six months ago has reached 75%, according to data tracked by blockchain analytics firm Glassnode.
These findings reflect a robust belief among Bitcoin’s holder base despite the flagship cryptocurrency slumping 20.5% from its lifetime high, leading to hopes that a classic crypto bull market could be on the horizon.
Bitcoin’s Loyal Holders Continue Accumulation Despite Price Lull
It appears Bitcoin holders are in no mood to offload inventory at these price levels or any time soon, as they anticipate future price increases.
Glassnode’s HODL Waves chart shows that 75% of the total Bitcoin circulating supply has been dormant for most of 2024. The metric marks an increase from last week, with only roughly 45% of circulating BTC remaining stationary over the same timeframe.
The increasing percentage of inactive Bitcoin supply is indicative of a strong tendency of HODLing among investors, usually associated with unwavering faith in the asset’s future value, even amidst the notorious downturns that have characterized the crypto market in recent months.
The term “HODL” describes the behavior of die-hard Bitcoin investors who prefer to hold their stash with virtually no intention of using or liquidating those coins.
The price of Bitcoin has fallen over 12% over the last month, data sourced by TradingView reveals. Nonetheless, BTC has registered a 12.18% price growth over the past six months. The world’s largest crypto by market capitalization was changing hands at $58,518, a 2.4% drop on a 24-hour basis.
As the supply-side illiquidity continues to increase, as indicated by fewer coins changing hands, any demand catalyst is expected to send the price rocketing.
Big Breakout In September?
Meanwhile, popular industry expert Rekt Capital Bitcoin’s price could be poised to break out in a parabolic rally in September, based on historic post-halving chart patterns.
Rekt told their 493.8K followers in a post on Sunday:
“Bitcoin tends to break out into the Parabolic Phase of the cycle some ~160 days after the Halving. If history repeats, Bitcoin could be just over a month away from breakout. That’s late September.”
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