TL;DR
- Speculation returns to the market: After a period of consolidation, there is renewed interest in Bitcoin.
- Long-term investors in profits: Few long-term holders are in losses, indicating bullish sentiment.
- Sell Risk Ratio Reset: Both short-term and long-term holders have reached a profit-taking equilibrium, suggesting the market is ready for a move.
The Bitcoin (BTC) market has experienced a period of consolidation in recent months, however, signs are beginning to emerge that speculation is returning.
Investors, both new and short-term, are showing renewed interest in the cryptocurrency, which is reflected in the amount of unrealized profits they hold, according to GlassNode’s latest report.
Importantly, the vast majority of long-term holders are in a profit position, indicating bullish sentiment among this group.
According to data from CoinMarketCap, at the time of writing this article, the price of Bitcoin is at $70,774, which represents an increase of 2.20% in the last 24 hours.
These investors, known as “Long-Term Holders” (LTH), are considered the most experienced and confident in the market.
Their behavior is usually a reliable indicator of the long-term trend.
LTHs have been accumulating Bitcoin for a considerable period, demonstrating their conviction in the technology and its growth potential.
Unlike short-term investors, who tend to be more sensitive to price fluctuations, LTHs have a long-term perspective and tend to maintain their positions even during market corrections.
LTH’s recent behavior suggests that they remain optimistic about the future of Bitcoin.
Despite the recent market consolidation, they have not shown a significant tendency to sell their assets.
This indicates that they are confident that the price of Bitcoin will rise again and are willing to wait for its upside potential to materialize.
Both short and long term holders have reestablished their equilibrium in terms of profit taking on Bitcoin
This is reflected in the “Sell-Side Risk Ratio“, a metric that analyzes the relationship between the absolute value of profits and losses locked in by investors and the size of the asset (measured as the Realized Cap).
The reset of the Sell-Side Risk Ratio suggests that most of the profits and losses that were to be taken in this price range have already been made, increasing the likelihood of more volatile moves in the near future.
It is worth mentioning that the analysis presented is based on on-chain data and does not constitute financial advice.
It is essential to do your own research before making any investment decision.
