Important facts:
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“This is not unusual behavior,” Glassnode explains.
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Overall, the bullish outlook for Bitcoin remains strong in the coming months.
For two weeks, Bitcoin (BTC) has been trading below $73,000 (USD), its new all-time high (ATH). Analysis by company on-chain, Glassnode, this is due to the tendency to take advantage.
This shows that last week there was a daily profit of more than $2.6 billion from the sale of Bitcoin. Of this, 40% came from long-term holders. “This suggests that many investors have started to take their chips off the table,” he says. glassnode,
However, the analysis highlights that This is not unusual behavior of Bitcoin bull cycles, “This matches very closely with the market pattern seen during all the ATH breakouts of the last cycle,” he says.
He explains that “higher prices activate more latent supply, allowing older liquid supplies to return to liquid circulation.” “This reflects a wealth transfer phenomenon, where long-term holders distribute supply to generate profits and meet new incoming waves of demand,” says Glassnode.
This can be seen in the following graph which shows the supply of Bitcoin in recent bullish cycles according to its age. While colors closer to blue indicate coins that have been stored the longest, colors closer to red indicate coins that have been stored the longest.
At the peak of a bull market, the graph appears red due to strong new demand, which is not happening at the moment. Although it has been shown that the supply of these actors has increased, Typical periods before bullish continuation are shown as,
Bitcoin appears to be in almost the same place as the last bullish cycle
Glassnode also shows that historically, Whenever Bitcoin surpasses the ATH, it goes through a period of pullback and consolidation before continuing the uptrend., This can be seen in the following graph, which also shows the similarity of the current behavior with the previous cycle.
The company details that in terms of both duration and distance from the April 2021 peak, the market is in roughly the same place as the previous cycle. This can be seen in the black line on the graph which shows the current period and the blue line which shows the previous period which peaked from 2018 to 2021.
In tune, Grayscale, the issuer of the largest Bitcoin exchange-traded fund (ETF), said this week that Bitcoin is “in the midst of a bullish phase.” As Cryptonoticias reported, It occurs between the reactivation of entries and the approach of halt in such instruments.A phenomenon that reduces emissions by limiting selling pressure.
