dailyhodl.com
Crypto insights firm Glassnode is keeping a close eye on Bitcoin investor behavior as the largest crypto asset smashes through its all-time high, reaching $66,813 according to CoinGecko.
In a new edition of its weekly newsletter, Glassnode says it is looking at the activities of long-term Bitcoin holders – entities that have kept their BTC dormant for 155 days or longer – to see whether the investor cohort is taking profits at current levels.
“As the market pushes towards the ATH (all-time high), and investors hold increasingly large unrealized profits, the incentive to sell is growing… Over the past week, we can see a slight softening of the LTH (long-term holders) net position change metric. This suggests a degree of LTH spending is occurring as prices rally above $60,000.”
The crypto insights platform is also watching the exchange net position change metric to measure the supply of Bitcoin in crypto exchange wallets. Glassnode is starting to see an uptick in the amount of BTC flowing into exchanges but says there is enough demand to absorb the potential selling pressure.
“What we can see is that after an extended period of sustained outflows, the on-net change in exchange balances has returned neutral.
This suggests that over the last 30 days, inflows have been matched with outflows, which further indicates that there is sufficient demand at present to absorb the sell-side. It does however indicate fewer coins are being withdrawn and is obviously less constructive for price than net outflows.”
The crypto analytics firm adds that Bitcoin still looks bullish while warning that it expects long-term holders to continue selling their BTC as prices move higher.
“Interestingly, this market structure is very similar to the period in late 2020 as Bitcoin approached last cycle’s $20,000 ATH.
All in all, the market remains quite bullish. However, it is likely that this early signal of older coins, owned by LTHs being spent on-chain will continue as it has in all previous Bitcoin cycles.”
You can read the full Glassnode report here.