Bitcoin price has gained approximately 1.52 percent in the past 24 hours to trade around $23,115.25 during the early Asian market on Tuesday. The recent rally has pushed Bitcoin price out of a falling trend that lasted over a year.
However, Glassnode analysts are warning the market has not signaled clear price action for traders to buy in at current levels. Moreover, Glassnode highlighted that Bitcoin miners and holders may be motivated to take some profits after the 2022 bear market.
“The recent price recovery from the December lows to over $23.2k has significantly improved investor profitability across the board,” Glassnode noted.
According to the on-chain analytic firm, the 2022 bear market has portrayed similar attributes to the 2018/2019 one. As such, the firm has noted that Bitcoin price will completely be out of the woods at around $28.3k.
From the holders’ profitability scale, Glassnode noted that the recent rally from $16.9k to $23.1k has increased the supply of traders’ profits from 55 percent to 67 percent. Reportedly, long-term holders are above their break-even price of about $22.6k
“After 6.5 months, the market price has finally recovered above the long-term holders’ cost basis at $22.6k. This denotes that the average LTH is only just above their break-even basis,” the firm noted.
Interestingly, short-term holders and Bitcoin miners are selling part of the bag to take some profits. With a notable recovery in Bitcoin miners’ balance sheet, Glassnode noted that the resulting behavior shift has switched from the accumulation of over 8.5k BTC/month to the distribution of negative 1.6k BTC/month. Reportedly, Bitcoin miners spent approximately -5.6k BTC since January 8 and have experienced a net balance decline YTD.
Source: https://coinpedia.org/bitcoin/on-chain-data-predict-potential-selling-pressure-for-bitcoin-what-next-for-btc-price/