The amount of bitcoin (BTC) supply last active in the past two to three years hit a 2-year high despite the asset’s consolidation below the $29,000 price mark after plummeting below the threshold over a week ago.
Glassnode, a blockchain data intelligence provider, first drew public attention to the metric in a tweet today. Per data from Glassnode, the amount of bitcoin last active in the past two to three years currently stands at 2.848 million BTC, the highest figure observed since 2021.
A chart shared by Glassnode showed a decline in this metric at the start of 2022 when BTC collapsed from its all-time high of $68,789, dropping below $40,000 in January 2022. The metric registered intermittent declines throughout 2022 but began witnessing an increase at the start of this year after bitcoin’s recovery campaign.
Since January, it has continued to increase to the current value of 2.848 million BTC, which represents 14.7% of bitcoin’s circulating supply. This metric indicates that increasing BTC holders hold onto their tokens for an extended period, typically for investment purposes.
Moreover, data on bitcoin’s long-term holders (LTHs) movement suggests a bullish trend. Notably, the BTC Binary CDD indicator reveals a relatively low on-chain activity among long-term asset holders. This shows that LTHs are currently holding on to their tokens.
Bitcoin consolidates below $29,000
This bullish trend has persisted despite bitcoin’s extended consolidation below the $29,000 price threshold. Bitcoin spent the last week of April struggling to solidify its position above the $29,000 territory to hedge against further dips.
However, following the first week of May, the asset lost the battle to the bears amid concerns about high transaction fees triggered by network congestion. BTC eventually dropped to a 2-month low of $25,899 on May 12. The asset registered eight consecutive daily losing candles from May 6 to May 13 – its highest losing streak since June 2022.
The asset is looking to recover, having gained by 2.12% in the past 24 hours, currently trading for $27,418 at the time of reporting. On its journey to reclaim $29,000, BTC needs to overcome the crucial resistance points at $27,500 and $28,100. Capturing these points should provide enough support for the bulls to have a go at $29,000.