A recent report from Glassnode stated that some long-term Bitcoin holders (LTH) sold some of their shares during the bull market and realized profits. Nevertheless, the report explained that the dramatic sell-off since late November does not necessarily indicate that a bear market is imminent. Instead, as the data shows, BTC is expected to rally again.
Since November 26, when the price of BTC dropped by more than 17% in 24 hours, the digital asset has recovered and the current trading price exceeds $19,000. Some analysts believe that it is only a matter of time before the leading cryptocurrency breaks the $20,000 mark.
Therefore, the report did not foretell the upcoming bear market, but pointed out that as the price rises, the trend of LTH selling stocks coincides with the long-term unloading trend. Nevertheless, the report pointed out an important factor that distinguishes this sell-off. it says:
Long-term holders seem to be accustomed to accumulating BTC in a bear market and then realizing its profits on the way up, but the important thing is before the highest price… If the price of BTC follows this historical trend, it indicates that we may be at the highest price A further price increase has arrived before.
At the same time, the author of the report seems to base his bullish BTC forecast on the observed changes in the “current profitable total circulating supply held by LTH”.
According to Glassnode data, when the price of BTC was below $10,000 on July 26, “the profitable supply of LTH was 10.8 million.” Now, almost four months later, the price of BTC has almost doubled, but ” LTH’s profit supply has only increased by 11.5% (or 1.2 million) and is now 12.1 million.”
According to the report’s explanation, the total profit has increased due to price increases, but “the number of coins in the profit has not increased significantly.”
Do you agree with the report’s recommendation that BTC is ready to rally again? Tell us what you think in the comments section below.
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