Losing value last year bitcoin It made a strong start to 2023. While BTC is waking investors from hibernation with its upward price movements, most of the phenomena believe the bull market has started.
The creator of the Hash Ribbon indicator, veteran investor and technical analyst Charles Edwards made a detailed analysis for Bitcoin amid the controversy.
“Bitcoin Liquidity Decreased”
Technical analyst examining Bitcoin on-chain benefited from the data. The metric that measures HODL (holding) time shows that the percentage of long-term BTC investors is increasing.
“Long-term investors are very cold-blooded in price movements. They usually do not participate in the market and trade with fear or excessive hope.”
Edwards stated that there is a decrease in Bitcoin liquidity, pointing out that the long-term investor rate has increased to 49%. Due to dwindling liquidity, the BTC price is rising more than before even on a low purchase.
Has it bottomed out?
According to on-chain data, the rate of Bitcoin investors who made a profit increased from 50% to 70% in just 1 month.
The famous analyst said that a similar situation was experienced in the bear markets of 2012, 2015 and 2018, respectively; He pointed out that a volatile price movement followed:
“The rate of profitable addresses suddenly increased from 50% to 70%. Historical data shows that this is a trend change.”
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