Recently, Bitcoin has gained attention by reaching a new record high. However, new data from Glassnode reveals that profit-taking volume is significantly lower than in previous instances.
Understanding Bitcoin Selling at Key Levels
Bitcoin profit-taking refers to selling BTC acquired at a lower price. On-chain analysis tracks this activity through transactions involving moved coins. Glassnode tracks realized profit volume, identifying total USD value of coins on-chain where the current price exceeds their last acquisition price.
Glassnode Analysis: A Closer Look at the Data
Glassnode's recent report highlighted unexpected trends in investor behavior. Despite reaching a new all-time high, the total realized profit-taking volume amounted to approximately $1 billion, significantly less than the $2.1 billion recorded during a previous market peak. This indicates that, although Bitcoin prices are higher, the volume of BTC sold is markedly lower compared to past events.
Implications of Increased Short-Term Activity
The analysis showed an uptick in transaction volume from coins held for less than a month, while the share from long-term holders decreased significantly. This suggests that newer market participants are realizing profits, while seasoned long-term investors remain focused on holding.
The analysis clarifies the low Bitcoin profit-taking volume amidst new price peaks. Long-term holders' behavior indicates strong bullish sentiment, supporting continued growth potential.
