- The price of Bitcoin is consolidating below $29,000.
- The active supply of Bitcoin is at its highest level in two years.
As the price of Bitcoin continues to consolidate below $29,000, the active supply of Bitcoin is on the rise.
Active Supply of Bitcoin on the Rise!
The active supply of Bitcoin (BTC) over the past two to three years has reached its highest level in two years, despite the asset consolidating below $29,000 for the past week.
According to blockchain data, the current active supply of Bitcoin over the past two to three years is 2.848 million BTC, the highest level observed since 2021.
Bitcoin 2-3 Year Active Supply
The graph shows a decline in this measure at the beginning of 2022 when BTC fell from its all-time high of $68,789 to below $40,000 in January 2022. The metric recorded intermittent declines throughout 2022 but began to witness an increase initially.
Since January, the current value of 2.848 million BTC, representing 14.7% of Bitcoin’s circulating supply, has continued to rise. This metric indicates that increasing BTC holders are holding onto their BTC for longer periods, typically for investment purposes.
Additionally, data on Bitcoin’s long-term holders shows an upward trend. In particular, the BTC Binary CDD indicator shows relatively low on-chain activity among long-term asset holders, indicating that long-term investors are currently holding onto their Bitcoins.
Bitcoin Consolidating Below $29,000
This upward trend has continued despite Bitcoin’s extended consolidation below the $29,000 price threshold. Bitcoin’s price spent the last week of April trying to solidify its position above the $29,000 region to protect against further declines.
However, after the first week of May, the asset lost the battle against bears amid concerns over high transaction fees triggered by network congestion. BTC eventually fell to its lowest level in two months at $25,899 on May 12. The asset recorded eight consecutive bearish candles from May 6 to May 13, the highest loss series since June 2022.
The asset, which has risen 2.12% in the last 24 hours, is currently trading at $27,372. To reclaim $29,000, BTC needs to surpass the critical resistance levels at $27,500 and $28,100. Capturing these levels should provide enough support for bulls to surpass $29,000.
