More investors HODL Bitcoin in anticipation of a 2021 BTC bull market

New data shows Bitcoin's current price action is showing higher levels of 'HODLing' activity than previous bull cycles.

Woo explained that the indicator measures Bitcoin investors' tendency to hold onto their BTC as its price rises.

There are several reasons why retail investors might be holding onto their BTC even more so than in previous bull cycles.

If Bitcoin rallies in 2021, most investors would see it as a post-halving bull rally.

Based on the tendency of BTC to rally after a halving, retail investors might be holding as a strategy to avoid being priced out if a strong sustained rally begins.

Most recently, the price of Bitcoin slumped after the U.S. Commodities and Futures Trading Commission charged BitMEX with violating the Bank Secrecy Act.

"This is the tendency of HODLers to hold onto their coins harder as price increases. I had expected reflexivity to increase during the mania phase of BULL markets, but it looks quite constant from the last two cycles This cycle is interesting; reflexivity is increasing rather than static compared to last cycles. While we now need more capital invested to get similar % gains in price, the effect of HODLers holding onto coins tighter is magnifying 'number go up' per dollar invested."

Heading into the fourth quarter, industry executives believe the U.S. presidential election could benefit Bitcoin and the positive HODLing data could further buoy BTC price.

Industry executives and prominent investors in the cryptocurrency industry foresee the upcoming presidential election in November benefiting Bitcoin.

The combination of favorable technicals, strengthening fundamentals, and rising HODLing activity could buoy a BTC bull run in 2021..