Bitcoin (BTC) should have no problem hitting $ 100,000 in the current cycle thanks to its impressive behavior.
In the latest newsletter published by Cointelegraph Markets, analysts at the Decentrader trading group tried to calm concerns that bullish Bitcoin gains will fade.
HODL Waves remains upbeat
According to them, their optimism is backed by data showing that more and more investors are using BTC over the long term – a year or more.
Taken from the popular HODL Wave Index, this indicates that there is less desire to sell bitcoins in a short time frame at a specific price, providing a solid basis for further growth.
Decentrader concluded, “1Yr + HODL Wave indicates that Bitcoin will comfortably reach the $ 100,000 level during this cycle.”
“The higher the number of bitcoins for a year or more, the less supply liquidity or potential selling pressure. If 50% or more of the bitcoins are held, the bull market continues, and there are potential concerns below.”
HODL Waves tracks the share of Bitcoins that have existed since the last time they were used in a transaction. Cointelegraph previously indicated that those who bought Bitcoin during the 2017 bullish campaign have largely held out despite the hefty gains.
BTC delivery blocks
As Cointelegraph reported on Monday, about 36% of Bitcoin supply is currently made up of “smaller” coins that have moved at some point in the past six months.
These reinforce the usual investor mental exchanges as total reserves continue to decline in March, despite BTC / USD reaching new all-time highs.
Miners appear to be increasingly interested in keeping their bonuses in BTC, as evidenced by figures from online analytics service Glassnode, which shows net mining sites this month will be positive. Michael Saylor, CEO of MicroStrategy, described their behavior as “completely logical.”
“Powerful owners are increasing their positions. Another sharp increase in #Bitcoin in illiquid wallets,” quantitative analyst Lex Moskovsky commented on another Glassnode chart.
Graph of net change of bitcoin mines. Source: Glassnode
Elon Musk, CEO of Technoking Tesla, became the latest high-profile drill when he announced on Wednesday that the automaker would offer products in BTC rather than funneling revenue into paper money.
According to Bitcointreasuries.org, Tesla currently owns around 48,000 BTC, and that number will increase when people trade Bitcoins for the company’s electric cars.