A recent Glassnode report says some long-term holders (LTHs) of bitcoin have unloaded some of their holdings and cashed in on their gains during a bull run. Still, the report explains that the sell-off, which has been noticeable since late November, is not necessarily a sign of an impending bear market. Instead, as the data shows, BTC is ready for another rally.
Since November 26, when the price of BTC down more than 17% in 24 hours, the digital asset has recovered and is currently trading for more than $ 19,000. Some analysts believe it is only a matter of time before the leading crypto crosses the $ 20,000 mark.
Therefore, instead of signaling an impending bear market, the report suggests that the move of LTHs to sell fits in with the long-standing trend of unloading as the price rises. Still, the report cites an important factor that distinguishes these sell-offs. It says:
Long-term containers usually seem to pile up BTC in bear markets, and then realize their profits on the way up, but more importantly before the top … If BTCThe price is following this historical trend, indicating that we expect further price increases before reaching the top.
Meanwhile, the report’s authors appear to be basing their optimism BTC prediction of changes observed in the “total amount of circulating supply currently in profit and held by LTHs.”
According to Glassnode’s data, when the price of BTC was below $ 10,000 on July 26, “LTH earnings were 10.8 million.” Now, almost four months later, the price is up BTC has nearly doubled, but “LTH offerings in profit are up just 11.5% (or 1.2 million) to reach 12.1 million.”
According to the report’s explanation, the total amount of winnings has increased as a result of the price increase, but “the number of coins with profit has not increased as significantly”.
Do you agree with the report’s suggestion that BTC is ready for a new rally? Tell us what you think in the comments section below.
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