crypto analytics firm glassnode; While Bitcoin is hovering at its highest levels, he is keeping a close eye on how Bitcoin investors are behaving. Bitcoin investors keep waiting? Or is everyone just selling to get a profit? Here are the notes from the firm’s report.
According to CoinGecko data Bitcoin (BTC)reached an all-time high of $66,813. Glassnode, in the new issue of its weekly newsletter, explained the behavior of the investor group, “long-term Bitcoin holders” in this period when the highest level was seen and in the near future. An important question is whether investors who keep their BTC for 155 days or longer make a profit, according to the firm.
“As the market continues to move towards ATH (all-time high), investors are increasingly making unrealized profits. This creates an enthusiasm for selling… Last week, it is possible that we could see a slight softening in LTH (long-term investors). As prices climb above $60,000, long-term investors seem to be selling to make a profit.”
Glassnode also uses the “currency net position change” metric to measure the supply of Bitcoin in crypto exchange wallets. According to the firm, we can see an increase in the amount of BTC flowing to exchanges, but we can also see that there is enough demand to absorb this potential selling pressure.
“What we’ve seen is that, after a long period of bullishness, the net change in foreign exchange balances is now neutral.”
This means that the entries and exits over the last 30 days have balanced each other, indicating that there is currently enough demand to absorb the pressure on the sell side.
Glassnode also added that BTC is still in an uptrend and expects long-term investors to continue selling their BTC as prices rise.
“Interestingly, the current market structure is very similar to the period in late 2020, when Bitcoin approached its $20,000 ATH.”
To read the full report (in English), click here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.