Data suggests that Bitcoin (BTC), investors who purchased at 2017 all-time highs have not yet sold.
According to the HODL waves metric, the largest portion of BTC supply is now made up of coins that have not moved for six to twelve months.
BTC buyers keep their nerve
Despite the strong gains and equally strong corrections of 2021, those who entered or increased their positions after November 2020 are refusing sell.
HODL Waves which monitor the age distribution of unspent transactions outputs (UTXOs) show that supply control by the six- to twelve-month “hodlers” has increased from 8.7% at June’s start to 21.4% in November 17.
However, the number of coins that have been held for more than a year has decreased slightly. This shows that there has been very little selling and that investors are still determined, except in the six- to twelve-month groups.
Chart of Bitcoin HODL Waves. Source: Unchained Capital
These data support the theory that very few BTC owners want to sell at current prices even though they are at all-time highs.
Cointelegraph reported that distribution of coins by long-term owners — a characteristic of bull markets peak phases — has begun. This was also the last time it happened in November of last year.
Bull market “still has some way to go”
Further numbers that track “older” BTC suggest that Bitcoin’s oldest users will not be disturbed.
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William Clemente, an on-chain analyst, noted this week that dormancy flow, which is Bitcoin’s market capital divided by annualized donmancy — remains low at the BTC/USD all time highs.
Clemente explained that high dormancy is a sign of older coins being used.
He said that “Seeing dormancy flow so low at the moment means older coins remain relatively idle,” in his Twitter comments Wednesday.
According to the metric, “The Bitcoin bull market has some way to go.”
Chart showing the flow of Bitcoin dormancy. Source: William Clemente/Twitter