Short-term Bitcoin investors take profit after the pump: Glassnode

Short-term Bitcoin investors take profit after the pump: Glassnode

sell certain Bitcoin investors as long as they can reclaim $ 23,000 after the primary cryptocurrency according to the Glassnode.

The latest report by the blockchain-intelligence provider examines the latest on-chain behavior patterns, which have been shown by short and long-term owners.

leave as long as you can

The newsletter published on Monday, begins with the examination of the price of Bitcoin, which has reclaimed "several on-chain price models".

A model contains the investor price-which reflects the average purchase price for all coins issued and distributed by Bitcoin miners. After overcome this model at $ 17,400, the average miner has returned to a position of profitability.

The step has also brought the Bitcoin of many people back to the profit zone, whereby the percentage offer has increased from $ $ 16,000 to $ 23,100. This was one of the strongest tips for the profitability of Bitcoin during a bear market that has ever occurred.

Glassnode explained that movements in this key figure can be useful to determine when a market recovery could be underway. However, movements of this size also offer Bitcoin owners who have returned to the profit zone, an incentive to implement some of their profits.

In particular, the percentage of short-term holder offer at the profit has returned to over 97.5 %-at this point "tilting investors to take the opportunity and get out with break-even or win.

"In view of this considerable increase in profitability, the likelihood of sales pressure from short-term owners will probably increase accordingly," said Glassnode.

The data already confirms this: The trading volume under short-term Bitcoin owners (those whose coins have recently moved less than 6 months ago) has gone far beyond its long-term declining trend. mining workers also sold in the rally.

"Therefore, the sustainability of the current rally can be regarded as a balance between the end of the end and newly established demand in order to cover the offer that is drawn from the contents of the investors through these higher prices," Glassnode continued.

long -term owners

While short-term owners are sold out, the number of coins that have not moved for over 6 months grows with a rate of 100,000 BTC per month. This means that the Hodler conviction remains strong even in the middle of a market rally.

At current prices, the average long-term owner is roughly on a break-even basis, which means that his coins are at the same price to which they have purchased.

last week Glassnode noted that the increase in volatility of Bitcoin could signal the beginning of a cyclical bull market this month.

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