Bitcoin hodling rate hits a 9-month high, raising hopes of a rally to $ 70,000

Glassnode’s data shows a year-long bull run in the Bitcoin (BTC) market and expects further upward movements in the future to encourage investors to hold the token rather than move it to other currencies.

The blockchain data analytics firm announced on October 28th that the total number of “lost or very long, immobile coins” hit a nine-month high of around 7.21 million BTC. In short, non-circulating tokens keep growing, they are kept in cold wallets by long-term owners or have lost their private keys, with little chance of recovery.

Entire BTC lost or not moved for a very long time | Source: Glassnode

As a result, the total amount of lost / very long unmoved BTC has exceeded 34% of the total supply of Bitcoin (21 million tokens), making the cryptocurrency even more scarce.

More evidence of the Bitcoin supply shock

Other data provided by CryptoQuant shows that Bitcoin reserves on all crypto exchanges have dropped to their lowest level since August 2018 – at 2.337 million BTC on October 28, 2021.

Meanwhile, the Miner Position Index (MPI), which measures the percentage of BTC leaving the wallets of all miners with a 1-year moving average, has been trading below zero since March 6, 2021, resulting in a heavy accumulation of miners.

BTC balance on exchanges and Bergmann position index | Source: CryptoQuant

KryptoQuant Note added that the amount of bitcoin owned by miners is currently at the same level as it was in May when the price was below $ 40,000. This shows that they also expect higher prices in the future.

Technical indicators

Bitcoin’s correction from around $ 67,000 to $ 58,100 came after the 60% rally in October, but BTC / USD formed a descending parallel channel (purple) during the downward move, increasing the likelihood that the structure is a one Trades bull flag pattern.

BTC / USDT daily chart | Source: TradingView

Bulls Flag is a bullish pattern and usually results in a continuation of an upward trend. This means that once the correction is complete within the current parallel channel, BTC is expected to break out and move a distance equal to the size of the previous uptrend, also known as the flagpole.

The flagpole is about $ 15,000 long. That means the cryptocurrency could technically soar by an additional $ 15,000 from the time the outbreak occurred. The Fibonacci levels on the graph above could serve as support before BTC breaks out and heads towards $ 70,000 or higher.

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According to Cointelegraph

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