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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Diamond Hands Reach New Highs, Preview Before Fresh Rally?

Reynaldo Marquez
Reynaldo Marquez
1 year ago
2 mins read
Picture of a bitcoin symbol standing on top of stacked gold coins, with a red candlestick chart behind it

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With a 31.6% profit in the weekly chart, Bitcoin has been retaking his mantle as the king of the crypto market during the past days. The first cryptocurrency by market cap has been moving to the upside with a strong conviction and seem poised to retake its previous highs.

Related Reading | How 90-Year Old Market Wizardry Predicted The Bitcoin Breakout

At the time of writing, Bitcoin trades at $54,659 with a 1% profit in the daily chart. During this period, BTC’s price was rejected as it entered the mid-area around its current levels.

BTC BTCUSD
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

In support of the bulls, Glassnode records an increase in the number of BTC investors with “diamond hands” or less inclined to take profits on sudden moves. This metric now stands at an 80.5% of the Bitcoin total circulating supply.

In that sense, 71.1% of the Bitcoin long term holders are in profit as BTC moved back into the $50,000, with a 9.4% at a loss and a 19.5% of the circulating supply in control of short-term holders. The latter are comprised of those investors who took a position in BTC in the past 3 months.

As seen below, Bitcoin has managed to climb to an all-time high in every previous bull market when the number of long-term holders reached or surpassed 54%.

Bitcoin BTC BTCUSD
Source: Glassnode

At its peak in 2021, when the price of Bitcoin touched the $64,000, Glassnode records a long-term holder’s percentage of 67.7%. In combination with the low percentage of short-term holders, there seems to be enough evidence to suggest a continuation in the upward trend.

Related Reading | Does Surging Crypto Market Greed Point To Another Bitcoin Correction?

Further data provided by Glassnode indicates a rise in the number of BTC purchase by long-term holders since March 2021. During this period, long-term holders added over 2.35 million BTC to their addresses.

In contrast, only 180,000 Bitcoin (BTC) were issued by miners. Therefore, long-term holders added 13x more BTC than those produced by this sector.

Bitcoin BTC BTCUSD
Source: Glassnode

Bitcoin Fundamentals Favor The Bulls

Additional data provided by CryptoQuant noted a reduction in the supply of Bitcoin held by crypto exchange platforms. This metric has dropped to a 1-year low, as seen in the upcoming chart.

BTC BTCUSD
Source: CryptoQuant

During this period, the chart shows a direct correlation between the price of BTC and its supply across exchange platforms.

Related Reading | Bitcoin Inflows Shows Institutional Investors Are Back On The Bull Train

However, CryptoQuant also notes almost no variation in the stablecoin supply ratio. On a decline since May 2021, this metric is used to measure the demand on the crypto market.

BTC BTCUSD
Source: CryptoQuant

As the chart shows, BTC’s price took important hits when the stablecoin supply ratio dropped in March until the end of July when an uptick coincided with Bitcoin moving away from its previous range in the $30,000.

If the bulls are to have a serious chance at retaking its previous all-time highs, the stablecoin supply ratio needs to get back at the yearly open levels.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

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Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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