Whether the current wave of bitcoin growth is seen as a bullish trap or strategic buying opportunity will determine the mood of long-term investors. Glassnode analysts came to these conclusions.
The recent market rally has pushed #Bitcoins prices above $23,000, surprising many investors.
However, with the price rise comes increased motivation for network participants to take exit liquidity, especially after the prolonged decline in 2022.
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— glass node (@glassnode) January 23, 2023
Digital gold’s wave of growth from December lows has generated profits for a significant portion of the coin’s supply, prompting speculators and miners to close their positions. Since January 8, the balances of the latter have decreased by 5,600 BTC.
The share of “profitable” coins in the total supply over the past two weeks has jumped at a record pace compared to previous bearish phases – from 55% to 67%. Analysts attributed this to the large number of bitcoins changing hands at prices below $23,300.
The return of metric values to the 55-80% corridor is associated with reaching the bottom and transitioning to a balanced state.
The amount of realized profits exceeded the corresponding figure of realized losses. Before that, the opposite situation was observed, and against the background of the collapse terra ecosystems and FTX there were two capitulations equivalent to 2.9% and 3.7% of the capitalization of the first cryptocurrency.
The greatest expenses were spent on the most “young” parts – from 24 to 6 months. During 2021 and most of 2022, they have dynamically played a smaller and smaller “role” in the spending of market participants.
The current price after 6.5 months has exceeded the “cost price” of bitcoins available to hodlers ($22,600). In this regard, the current bear market has proven to be comparable to what happened in 2018-2019. At present, the “losses on paper” of long-term investors average 33%.
Since the beginning of December, the quantity of coins “aged” over six months has increased by 301,000 BTC. This is an indicator of confidence in the stability of the current rally.
The monthly accumulation rate by hodlers reached 100,000 BTC. After FTX collapsed, they dumped bitcoin at a “rate” of 314,000 BTC per month.
Over the past week, long-term investors who have continued to accumulate coins have given the quotes stability. According to experts, this is a marker that hodlers continue to believe in the prospects of the first cryptocurrency and are betting on a bullish macrotrend.
“Tracking their spending will likely be a key tracking item in the weeks to come,” – said the experts.
Previously, LookIntoBitcoin experts authorized the transition from bitcoin to the early stage of the bull market.
Prior to this, Glassnode highlighted the probable price realization of the first cryptocurrency local maximum.
As a reminder, Bloomberg strategist Mike McGlone predicted that the Nasdaq Composite Index would fall below its 200-day moving average, which could postpone the journey of digital gold.
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