The last time there was so much Bitcoin idle, it recovered to $ 20,000

  • Bitcoin has faced intense weakness in recent days.
  • Buyers and sellers of the reference digital asset have been locked in an intense battle of around $ 9,000, with bears trying to keep it below this crucial support.
  • Although this does not bode well for your short-term outlook, your macro outlook remains strong.
  • A fundamental metric has just reached levels not seen since just before the intense 2017 rally of up to $ 20,000
  • If history rhymes, this metric could be an incredibly positive sign for cryptocurrency

Bitcoin and the aggregate crypto market are teetering on the edge of a cliff right now.

$ 9,000 has been established as an imperative support level for the past few weeks, and sellers are trying hard to push BTC below this level.

It is important to note that each drop below here has been fleeting, as the existing buying pressure in the upper region of $ 8,000 is quite intense.

If this support breaks, the benchmark crypto is likely to make a massive bearish move that defines its short-term trend.

One measure that can give bulls a much-needed boost is the amount of Bitcoin idle. This only reached levels not seen since before the rally to $ 20,000 several years ago.

Bitcoin’s Bull case grows despite recent price action

Bitcoin’s recent price action doesn’t seem to be emblematic of its underlying technical strength.

At time of writing, Bitcoin is trading below 1% at its current price of $ 9,100. This marks a rebound from its recent lows of $ 8,900 that were set yesterday.

For the first time in many weeks, BTC posted a sustained break below $ 9,000. Buyers were able to regain this level, but it still seems to be getting weaker every day.

However, as Bitcoinist reported yesterday, the bullish case for Bitcoin remains strong, especially from a fundamental perspective.

One factor that clarifies this is the rising hash rate that the cryptocurrency has seen in recent times. This has caused crypto’s so-called “hash tapes” to emit a buy signal.

Inactive BTC reaches pre-2017 Bull Run levels

Another factor indicating that the cryptocurrency is incredibly robust right now is the large amount of Bitcoin that has been dormant for over a year.

According to data from the Glassnode analytics platform, 61% of Bitcoin’s current supply has not budged in over a year. This points to a strong propensity among investors for “hodl”, which also gives a boost to its underlying strength.

The research firm also explains that this metric has grown before crypto enters bull territory.

“The last time we saw this amount of Bitcoin that had not moved in over a year, was in early 2016, before the BTC run to $ 20k,” they explained.

Image courtesy of Glassnode Featured image from Shutterstock.