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For more than two weeks, Bitcoin has been trapped in a sideways trend. At a time when most people are hoping to profit, there are individuals who remain unconvinced that the price will decline. This, however, is only observable in sentiment and not in facts.
In fact, an examination of on-chain indicators seems to indicate that, despite the fact that prices have slowed, selling has remained almost non-existent. And this isn’t limited to BTC.
Bitcoin and Ethereum’s HODLing continues
The accumulating trend is well established and continues to expand. However, as people continue to be positive on the top two cryptocurrencies, HODLing has become the new trend. If you look at the HODL waves, you will notice a strange tendency of young coins being HODLed.
The market has chosen coins that are less than three months old for HODLing. The drop in numbers suggests that the market is unwilling to spend until volatility is high.
This is also true for ETH. These new coins account for 15% of the circulating quantity of BTC and 12.5 percent of the circulating supply of ETH.
And, right now, volatility is at an all-time low, making HODLing a viable option. Bitcoin is at a three-month low of 45 percent. In the case of Ethereum, volatility is at a 6-month low of 50%. This offers the ideal environment for HODLing to persist.
But, is it supported by investors?
Indeed. Liveliness indicates that there has been a considerable increase in dormancy for both assets, as opposed to coin days being destroyed. This has been going on for almost three months.
Accelerating accumulation leads to increased HODLing, which results in fewer coins sold for both BTC and ETH.
The investors’ perception is also visible from the steady rise witnessed by the number of addresses with balance. These figures represent the involvement of investors drawn out of market performance and not trend.
With transaction volumes for ETH as low as $20 billion, the tale has some credence. Despite a jump last week when volumes reached $397 billion, Bitcoin volumes have been low. They have since dropped to an average of $30-$50 billion.
This HODLing is primarily from mid-term investors rather than long-term accumulators. HODLing will continue as long as these levels are maintained.