Long-term Bitcoin holders limit cashing out as BTC eyes $65,000 retest

Bitcoin, BTC, holder, glassnode, all time high
“Bull on the Piano.” by Bernard Spragg is marked with CC0 1.0

Key Takeaways:

  • Bitcoin holders expect further gains ahead as they choose to HODL their BTC than trade it.
  • Their expectations rise in the wake of the first Bitcoin ETF approval in the US.
  • Bitcoin is inching closer to its precious all-time high, hinting at a $65,000-retest.

YEREVAN (CoinChapter.com) – Long-term Bitcoin HODLers expect more gains in the future, as they increasingly choose to stay in the game rather than cash out their profits. Meanwhile, the flagship cryptocurrency has gained 57% quarter-to-date and approached its all-time high of $64,895. The BTC/USD pair traded at $63,952 in the London session Wednesday.

Analytical platform Glassnode noted that the HODLer Net Position Change had reached a one-month-low. In detail, the Net Position Change is a metric that shows a shift in incentive. Therefore, a low position change hints at the traders’ preparedness to hold their Bitcoin in hopes of higher gains.

Related: Gold ETF success shows the BTC price boom hasn’t even started, as the SEC approves the first Bitcoin ETF in the US.

Moreover, according to Glassnode, the number of BTC addresses in profit has reached its all-time high (over 37.3 million).

Why HODLing?

The recent launch of the first US-based Bitcoin ETF (exchange-traded fund) contributed to the decreased cash-out and sparked bullish expectations.

In detail, ETFs allow traders to trade an asset and gain profits without owning its units. Thus, they give exposure to a particular asset market without the necessity to purchase, store and resell it.

Having exposure to the Bitcoin market through ETFs might spur the popularity of cryptocurrencies as a mainstream asset, raising prospects of a higher BTC price in the future.

Earlier, the US Securities and Exchange Commission (SEC) rejected Bitcoin ETFs for years. But last month, the commission’s chairman Gary Gensler announced his willingness to review their position in the matter weeks. As a result, exchange-traded products provider ProShares got the approval on Oct 18.

While ProShares’ Bitcoin Futures ETF already trades on New York Stock Exchange (NYSE), the largest BTC investment vehicle, Grayscale, entered the race with a Bitcoin Spot ETF application to the SEC. As opposed to the futures trading, the Spot ETF, if approved, will have physical units of BTC to back the ETF.

Also read: World’s largest Bitcoin investment vehicle enters the ETF race as BTC hits $64,000

Meanwhile, Bitcoin…

…was catching up with its all-time high (ATH) and traded at $63,952 in the European session. The alpha crypto could retest the resistance at $65,000 in the upcoming sessions and establish a new record value. The BTC/USD pair already inched up 16.4% in the previous week.

Related: Bitcoin resumes rally towards previous ATH despite mounting tensions in El Salvador.

The cryptocurrency’s progression throughout the quarter has seen short periods of consolidation before the new burst upward. As a result, BTC could have a few sessions below the ATH, then break above the $65,000 threshold if the trend persists.

Bitcoin approaching its all-time high. Source: BTCUSD on Tradingview.com
Bitcoin is approaching its all-time high. Source: BTCUSD on Tradingview.com

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