Key Points
- Bitcoin exchange deposits have reached a six-year low, indicating reduced selling pressure.
- Long-term hodlers are crucial in preventing a drop to the $55K support level.
Bitcoin exchange deposits have recently reached their lowest point in six years. This suggests that the amount of BTC being deposited for selling is decreasing.
This decrease in deposits is largely attributed to Bitcoin hodlers, who are playing a key role in preventing Bitcoin’s price from dropping to the $55K support level.
Bitcoin’s Price and Hodler Influence
Over the past weekend, Bitcoin’s price briefly spiked above $60K. However, it has since retreated to $58K. Despite this fluctuation, a report from CryptoQuant indicates that Bitcoin exchange deposits have hit a six-year low, suggesting a decrease in selling pressure.
Fewer Bitcoin exchange deposits can be seen as a bullish signal. This reduction in supply can potentially increase the value of each BTC token. Furthermore, it suggests that investors are confident in a price recovery.
Long-Term Hodlers and Market Trends
The number of long-term hodlers has increased significantly, with a 375% increase from 8 million to 38 million over the past six years. These hodlers, who have held BTC for over a year, now represent over 70% of total Bitcoin addresses.
Despite some signs of a potential bear market, the continued support from long-term hodlers suggests a belief in a potential price correction. If these hodlers continue to refrain from selling, this could maintain the downward trend of BTC deposits on exchanges.
Looking back over the past 30 days, long-term hodlers sold a significant portion of their holdings for the first time on September 16th, which coincided with Bitcoin’s price retracing to $58K. If this event proves to be an anomaly and Bitcoin exchange deposits continue to remain low, the potential for a new all-time high remains.
However, if long-term hodlers continue to sell, the $55K support level could be at risk, introducing more uncertainty into the market.
