After consolidating for a very long period of time at around $60K levels, Bitcoin (BTC) has finally given the upward breakout moving past $62,300 levels and hitting its new all-time high. At press time, BTC is trading at $62,660 with a market cap of $1.173 trillion.
The Bitcoin (BTC) price rally comes amid strong whale activity and the constant falling of Bitcoin supply at the exchange. The Bitcoin liquidity at exchanges has been dropping constantly as institutional players continue to move their holdings to cold wallets.
On the other hand, Bitcoin (BTC) miners are also willing to give their newly mined supplies and resolved them to HODLing. As per market analyst Willy Woo, the number of Bitcoin HODLers is continuing to increase significantly. He refers to them as the ‘Rick Astler’ buyer i.e. someone who just accumulates more BTC and holds them forever without selling anytime.
Recently, Willy Woo shared data of the Liquid Supply Change Metric that shows coins moving from the Liquid to the Illiquid regions.
Rick Astley loving this dip. He's the guy (marked in red) that buys and never sells.
— Willy Woo (@woonomic) April 7, 2021
As we can see, the red region shows a high illiquid supply for Bitcoins. Thus, HODLers who have been buying Bitcoins recently are holding their supplies very strongly.
Bitcoin (BTC) Coin Years Destroyed (CYD)
This metric from Glassnode tracks the number of coin days destroyed over the last year. This basically shows whether Rick Astley (HODLer) is either selling their old supplies or HODLing over the last year.
As we can see from the above chart, we are currently at the CYD levels last seen during 2013, but yet not as high as 2017. As Glassnode reports:
“Given the Bitcoin network is older, and coins in the supply have had more time to accumulate coin-days, if many HODLers were spending their coins, we would expect a relatively large CYD reading.”
Thus, it shows that Bitcoin HODLers are still not spending their old coins. Many analysts have already given a $100K price target for Bitcoin by the year-end.
As CoinGape reported earlier today, that the current technical indicator shows a bullish trend for Bitcoin. Thus, the BTC price can go all the way up to $70,000 levels from its current price. As BTC enters a new price discovery zone, it will be interesting to see how far the rally sustains.