The amount of “hibernating” bitcoin is nearing a record, with more than 60% remaining unused in at least a year

Bitcoin price could be struggling to break back below $40,000 at press time, but new data shows few are interested in selling.

Data from on-chain analytics firm Glassnode shows that despite volatile prices, more than 60% of BTC supply hasn’t left its wallet for a year or more.

The “strong hand” is seldom stronger than it is now

Long-term investors’ determination to HODL is a feature that sets the current bitcoin market apart from most other downtrends.

As spot price action last month broke a 50% loss versus the ATH in November, major concerns are to be expected. But for seasoned holders, a sell-off never happened.

In fact, long-term investors have even added to positions or maintained exposure over a long period of time.

According to Glassnode’s HODL wave indicator, as of Feb. 18, 60.61% of BTC supply has not traded for a year or more.

Bitcoin HODL wave chart | Source: Unchained Capital

This number is important because there have only been two higher Bitcoin hodl waves of 1 year or more (currently 61%) in Bitcoin’s history.

Accordingly vinyl record by businessman and investor Alistair Milne, both cases are bearish, heralding a major rally in bitcoin price action.

Therefore, it is likely that a very different trend will form for Bitcoin in the medium term. This is likely to challenge the largely bleak narrative of flagging macro support, rising interest rates and geopolitical tensions.

“Long-term HODLers are patient with HODL because they know what might be coming,” said Philip Swift, an analyst at trading suite Decentrader. to speak more about data.

Low timeframes hurt speculators

As a result, the short-term trends are unlikely to affect the majority of Bitcoin in circulation, but these trends are the areas of least concern this week.

For example, while tracking order book activity on major exchange Binance, analysis source Material Indicators found that immediate support above $40,000 disappeared before falling to a two-week low on Friday.

“As promised, here is an update on how BTC liquidity is moving. Not sure if the $13M carpet-pulling company is the one that added $15M, but pretty confident that an added company is trying to take control of the near-term PAs until they’re filled.

Source: Material Indicators

As reported, retail investors have scaled back their cumulative activity over the past week.

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