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Glassnode Report Suggests Big Price Move Ahead For Crypto, Despite Moderate Capital Flow
- Strong market conditions prompted long-term Bitcoin holders to sell, taking advantage of high prices.
- Despite initial sell-offs, selling pressure from long-term holders has recently decreased.
- This easing of selling pressure is likely to strengthen bullish market movements for Bitcoin.
Analysts from Glassnode have pointed to strong Bitcoin market conditions which have led to increased selling pressure from long-term holders seeking to capitalise on higher prices.
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This trend is evident from the notable decreases in the “Supply Last Active 1y and 2y” during March and April, indicating that these investors are distributing their coins in response to rising demand as prices approached the all-time high (ATH).
We can see this via the large decline in the Supply Last Active 1y and 2y throughout March and April, as longer-term investor cohorts distributed coins to satisfy new demand in the run up to the ATH.
Glassnode Nonetheless, the reserves maintained by investors for more than three years are still increasing, indicating that these long-term holders are holding out for even higher prices before they decide to sell, the analyst added.
They further wrote that “more than half of the Bitcoin coin supply hasn’t transacted onchain in the last 2yrs or more.”
Easing Long-Term Holder Selling Pressure Boosts Bitcoin Bull Market
Additionally, the analysts noted a shift in the Long-Term Holder (LTH) Binary Spending Indicator:
We note a significant and sustained decline in LTH Supply into the $73k ATH in March.
Glassnode The LTH Binary Spending Indicator is a useful metric for assessing the selling pressure exerted by long-standing Bitcoin holders.
It reveals that there was a significant and persistent reduction in the supply held by long-term holders as Bitcoin’s price reached its ATH of US$73 (AU$110) in March. This indicates that many long-term holders were selling their holdings, increasing market supply.
However, in recent weeks, this trend has reversed somewhat. The selling pressure from long-term holders has noticeably decreased, which has provided more space for bullish market movements and reduced overall resistance in the market.
BTC, ETH Trade Sideways as Bittensor Makes Largest Moves
At the time of writing BTC is trading at just under US$70K (AU$105K), slightly down on the 24-hour timeframe. Ethereum is holding its gains it made yesterday after the ETF news – which could send it higher up once approved overnight or back down if the SEC changes its mind and refuses the Ether ETF.
Most major assets are also slightly in the red, with Bittensor (TAO) and Kaspa (KAS) the only assets making notable gains on the 24-hour setting. TAO currently trades hands for US$476.06 (AU$718.87), a plus of 11% since yesterday.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
