Bitcoin market momentum is being buoyed up by the upcoming Coinbase IPO on April 14 among other things. The latest report from on-chain analytics provider Glassnode has reported that additional momentum has come from Grayscale’s intent to convert its Bitcoin Trust into an exchange-traded fund (EFT).
Analyst Willy Woo has coined new terminology for Bitcoin holders, labeling them as ‘Rick Astely buyers’ after the British singer who had his one-hit wonder in 1987.
“These are strong hands who are never gonna give you up [read: hodling coins forever], nor let you down [read: never let their sat balance go down].”
Woo cited a chart showing liquid supply change which was still deep in the red indicating that coins were not moving or being spent. The metric indicates the rate at which coins are crossing the liquid to the illiquid threshold.
#Bitcoin has held strong this week as on-chain data suggests old hands are maintaining their composure.
– Rick Astley HODLers (h/t @woonomic)
– Stablecoin supply expansion
– Cyclical metrics to watch closely
Read more in The Week On-chain👇https://t.co/VGwUnL8taX
— glassnode (@glassnode) April 12, 2021
Never Gonna Give You Up …
The report added that the Bitcoin HODLer Position Change uses 155 days as the measure of ‘old coins’, in that they have not been touched for that period of time.
155-days ago was around mid-November when BTC prices were trading up from $16k to $18k following MicroStrategy’s initial two acquisitions it noted.
“As a result, it is likely that the coins purchased by institutions in late 2020 and early 2021 are starting to mature past the 155-day threshold (assuming they held on in true Rick Astley style).”
The uptrend in this metric is likely to continue providing those institutional buyers continue to hold. With many funds seeking much longer-term gains than short-term day traders and speculators do, the reluctance to sell is likely to continue.
Bitcoin Price Outlook
At the time of press, Bitcoin was trading at $60,250 according to Tradingview.com. It had touched $60,800 during Tuesday morning’s Asian trading session following a fall below the psychological price level in late trading on April 12.
BTC is currently trading up around 3% since the same time last week, having made a new all-time high of $61,150 on April 12.
As reported by CryptoPotato, on-chain data has confirmed that miners are now holding and BTC stored on exchanges is falling which suggests a reluctance to have the asset ready to sell.