Bitcoin’s recent rally to a 2023 high is supported by on-chain and sentiment data, according to Glassnode. The data suggests that Bitcoin is in an accumulation pattern, with its available supply reaching a new historical low. Smaller, long-term holding entities are purchasing the available BTC, leading to a tightening of the supply. Long-term holders have reached new highs compared to short-term holders, and short-term holder supply has diminished to all-time lows. This tightening supply is helping to keep Bitcoin’s price above $34,000 and providing strong support above $30,000. The growing confidence in Bitcoin is not limited to smaller entities, as nearly all entity cohorts are increasing their Bitcoin holdings this year. Overall, the illiquid supply of Bitcoin and the bullish conviction of long-term holders are contributing to the rally.
