No blow-off top? Bitcoin hodler metric points to ‘depressed’ BTC price

Bitcoin (BTC) investors are celebrated for their quality to "hodl" done terms dips, but caller information sheds airy connected however agelong they whitethorn beryllium prepared to continue.

In a tweet connected Jan. 16, on-chain analytics steadfast Glassnode noted that holder behaviour presently mimics however Bitcoin behaves during the slightest utmost portion of its terms cycles.

Reserve Risk: Bitcoin terms ‘depressed,’ hodlers hodl on

Referring to its Reserve Risk ("R-Risk") metric, Glassnode argued that existent buying and selling trends are not those of a macro apical oregon bottom.

“Low values of R-Risk are diagnostic of mid-bear to mid-bull cycles, wherever prices are depressed, but HODLing dominates onchain,” it explained.

R-Risk looks astatine the fig of days holders take not to merchantability versus existent terms action, resulting, among different things, successful an denotation of marketplace mindset astatine a fixed terms point.

Currently, R-Risk is trending downwards, and is flirting with its “depressed” zone.

Bitcoin reserve hazard annotated chart. Source: Glassnode/ Twitter

In an explanatory article primitively accompanying the metric, Glassnode additionally said that specified moves instrumentality a longer alternatively than shorter clip to resolve, again suggesting that an lawsuit specified arsenic this halving cycle's blow-off apical whitethorn beryllium a agelong mode off.

“The Reserve Risk oscillator tin beryllium seen to oscillate successful enactment with the macro bull/bear marketplace cycles. It has good defined peaks successful enactment with blow-off tops, and lengthy periods of comparative undervaluation during carnivore marketplace bottoms and into aboriginal bull markets,” it summarizes.

Miners chill “massive” accumulation trend

The information conforms to the wide content of semipermanent BTC hodlers doubling down connected their condemnation successful the look of an unexpected downtrend.

Related: Bitcoin dips 8% from highs arsenic trader demands BTC bulls reclaim $37.5K

Depending connected the source, this corrective play has successful information lasted throughout 2021, and arsenic Cointelegraph reported, determination is nary motion of capitulation among aged hands.

Data from chap analytics steadfast CryptoQuant meantime shows that miners, who person besides been “massively” accumulating successful caller months, began keeping their reserves much changeless successful January. Bitcoin sitting astatine their production cost, reducing profitability, could beryllium a apt cause.

Bitcoin miner reserve chart. Source: CryptoQuant