Bitcoin (BTC) investors are famous for their ability to "hodl" through price dips, but new data sheds light on how long they may be prepared to continue.
In a tweet on Jan. 16, on-chain analytics firm Glassnode noted that holder behavior currently mimics how Bitcoin behaves during the least extreme part of its price cycles.
Referring to its Reserve Risk ("R-Risk") metric, Glassnode argued that current buying and selling trends are not those of a macro top or bottom.
“Low values of R-Risk are characteristic of mid-bear to mid-bull cycles, where prices are depressed, but HODLing dominates onchain,” it explained.
R-Risk looks at the number of days holders choose not to sell versus current price action, resulting, among other things, in an indication of market mindset at a given price point.
Currently, R-Risk is trending downwards, and is flirting with its “depressed” zone.
In an explanatory article originally accompanying the metric, Glassnode additionally said that such moves take a longer rather than shorter time to resolve, again suggesting that an event such as this halving cycle's blow-off top may be a long way off.
“The Reserve Risk oscillator can be seen to oscillate in line with the macro bull/bear market cycles. It has well defined peaks in line with blow-off tops, and lengthy periods of relative undervaluation during bear market bottoms and into early bull markets,” it summarizes.
The data conforms to the overall impression of long-term BTC hodlers doubling down on their conviction in the face of an unexpected downtrend.
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Depending on the source, this corrective period has in fact lasted throughout 2021, and as Cointelegraph reported, there is no
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