Developments in the Bitcoin network over the past few months may be the harbinger of a new bull run.
In Bitcoin, which exceeded $ 10,000 last day, a halving will be done a few days later. We do not know what direction Bitcoin price will move after May 12. But at the moment, there are some signs that Bitcoin may be on the rise.
The HODL Period Begins
Bitcoin traders have started doing HODL in the past weeks. During this process, people started to buy Bitcoins held in stock markets to their wallets and not to sell their BTCs.
Liesl Eichholz wrote a letter for Glassnode Insights two days ago and stressed that there is a significant increase in the number of investors doing HODL in Bitcoin. Compiling the data of the past few months, Eichholz draws attention to the obvious increase in the number of investors doing HODL by sharing the chart below:
The fact that investors doing HODL increased has meant that people think Bitcoin price will go up. It may also be positive for Bitcoin in the long term for investors to behave in this direction.
Number of Transactions Increasing
There is another sign that the bulls are coming in Bitcoin. The number of investors who are currently doing HODL, that is, not trading in any way, keeping their Bitcoins in their wallets, is increasing. In such a period, it could be expected that the number of daily transactions in the Bitcoin network would decrease. But this is the opposite.
The number of daily transactions in Bitcoin has increased steadily over the past few weeks. As can be seen on blockchain.com, there are many more transactions on the network, especially since mid-April.
According to the information provided by Glassnode, some of these transactions are carried out by whales and long-term investors, and some by new investors. Meanwhile, while saying “new investor”, it should be said that the number of new addresses in the Bitcoin network has started to increase rapidly. According to information reported by Eichholz, the number of new addresses in Bitcoin has never increased faster since January 2018 (after BTC reached $ 20,000).
While many investors have begun to make HODL, the number of new Bitcoin investors is growing rapidly. The fact that the number of new investors is increasing does not necessarily mean that the price of Bitcoin will increase. If so, Bitcoin was impervious to a large portion of 2018. But at least for now, we can interpret it as a sign in favor of the bulls.
In Bitcoin, these marks do not only cover the past weeks or days. There is a situation in the Bitcoin network that can be counted in favor of the bulls for now.
According to the information shared just a few hours ago, the total amount of Bitcoin currently held by traders on the stock market has dropped to its lowest level in the last 6 months. This means that people continue to withdraw their money on the stock exchanges.
In addition, the circulating Bitcoin supply has declined to its lowest level in recent months. This can mean that whales are starting to do HODL, or it might mean that a big dump will come. It can mean that traders are starting to do HODL or they may be starting to trade on a smaller scale. Therefore, it is not quite right to interpret this as a sign in favor of the bulls. However, it may be possible to interpret this in the light of other data.