Market data analytics firm Glassnode is closely monitoring investor behavior as Bitcoin hits a new all-time high (ATH) of around $ 67,000.
In news As the new weekly, Glassnode says it is analyzing the activities of long-term owners (LTH – companies that hold BTC for 155 days or more) to see if that group of investors are taking profits at current levels.
“As the market moves towards ATH and investors cling to growing unrealized gains, the incentive to sell grows … Last week we saw a slight decrease in LTH’s net position change numbers. . This proves that LTH spends money when the price rises above $ 60,000. “
BILLIONor change the net position of LTH | Source: Glassnode
The platform also tracks the exchange’s net position change index to measure the supply of bitcoin in the exchange’s wallet. The amount of BTC started flowing into the exchanges, but there was enough demand to absorb the potential selling pressure.
“What we can see now is that the net change in foreign exchange balances is back to neutral after a long period of sustained outflows.
Thus, for the past 30 days, the inflow has matched the outflow, proving that there is now enough demand to absorb the sellers. However, fewer coins were withdrawn and that is obviously less constructive for the price than net outflows. “
BILLIONNet position change on the stock exchange | Source: Glassnode
Glassnode adds that Bitcoin still looks bullish while long-term owners are warned not to keep selling if prices rise.
“Interestingly, this market structure is very similar to the late 2020 period when Bitcoin hit the $ 20,000 ATH of the previous cycle.
In general, the market is still quite optimistic. However, it is likely that this first signal that older LTH-owned coins are being issued in the chain will continue, as in all previous Bitcoin cycles. “
Underground catalyst could secretly trigger a massive long-term bitcoin rally
Prominent analyst Benjamin Cowen says that a neglected catalyst could spark a “huge” long-term rally for Bitcoin.
In a new strategy session, the analyst looks at the US dollar index (DXY), which compares the US dollar with a basket of other major fiat currencies. In general, weaker dollars generally mean higher prices for many assets.
analyst Disclosure One thing that could add more bullish energy to Bitcoin is that DXY is starting a macro downtrend. According to Cowen, DXY is likely to have a bearish bias in rejecting the 100-week simple moving average.
“Ideally, in order to best support Bitcoin, I would like to see a further decline in DXY. This is going to be best for bitcoin and is insane when it comes to the US dollar currency index … look at the actual macro area. “
Cowen pointed out that DXY has been trading on a major descending channel for about 30 years. According to him, there is now more space at the bottom of the channel than at the top, suggesting that DXY is more likely to go down and therefore the price of Bitcoin will be higher.
Despite the bullish DXY for most of Bitcoin’s existence, the crypto king managed to maintain a long-term bullish structure. The analyst also examines what could happen if DXY eventually entered a more significant downtrend.
“The US dollar has more or less appreciated during this time. While it has risen, there have been a couple of key times when the dollar fell relative to Bitcoin’s bull market.
Imagine what Bitcoin could do if the dollar fell again … I think that would be extremely bullish for the crypto king. “
Source: Benjamin Cowen
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to AZCoin News