A look into the Bitcoin price action shows a consolidation under the $35,000 support level has resumed, but the majority of holders are holding steady. Onchain data has revealed that the number of Bitcoin unmoved in a 3-month timeframe has reached a record high of 88.5%. The upside potential remains huge despite the ongoing consolidation, as the top crypto is still up by 26% since the beginning of October.

BTC Price Drops Below $35,000 But Investor Sentiment Remains Bullish

Bitcoin managed to push above $35,000 a few times this week,  propelling millions of BTC wallets into profitability. The crypto has since dropped below $35,000, but long-term investors remain optimistic, according to on-chain analytics of Bitcoin movement. One particular metric that speaks a lot about the current Bitcoin cycle is Glassnode’s HODL Waves.

HODL Waves change color based on their age in wallets. Bitcoins start at red immediately after they’re transferred into wallets and gradually transition to purple as they continue to remain unmoved. 

This metric, which tracks the age of Bitcoins on the move and on wallets, has shown almost 90% of BTC total supply has remained idle in the past three months. 

The hilarious thing is that 88.5% of the #bitcoin supply hasn’t moved in the last three months.

Wall Street is gonna have to really pump this thing to get hodlers to part with their coins. $BTC pic.twitter.com/CtD7GoA9ka

— Dylan LeClair (@DylanLeClair_) November 2, 2023

A similar metric from IntoTheBlock has shown retail traders joining the long-term holder bandwagon as investors start to hold on to their assets in the prospect of a BTC spot ETF approval by the SEC. IntoTheBlock’s holding metric puts the number of addresses holding Bitcoin for more than one year at an all-time high of 34 million addresses.

Investors Anticipate SEC Approval Of Spot Bitcoin ETFs

Several factors have contributed to the increase in long-term confidence of Bitcoin investors, one of which is the commencement of a spot ETF trading in the US. The industry expects the SEC’s approval of spot Bitcoin ETFs to ignite the next bullish run for the price of Bitcoin. A top executive at Valkyrie Investments is very confident these ETF applications will be approved by the end of the month.

However, Singapore-based QCP Capital attributed the recent spike in Bitcoin to macro forces like the drop in US bond yields, not the excitement around spot ETFs. Low bond yields force investors to look into higher-yield investments like BTC.

Overall, Bitcoin looks to remain in a consolidation phase until buyers step back in or some catalyst drives the next rally. The last time Bitcoin’s supply reached 88% for this metric was during a consolidation in late 2022, where bears got the better and Bitcoin dipped below $20,000. A continued consolidation could see Bitcoin follow this pattern, breaking below its current range to reach $30,000.

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