After leaning under $35,000, Bitcoin (BTC) is trading 6% up today at $36,858 while participating in the overall crypto market recovery. It a close battle between the Bitcoin (BTC) bulls and the bears and either of the two will gain dominance in a short time. To understand this, let’s take a look at some of the on-chain metrics for Bitcoin.
As we know, the short-term holders (STHs) continue to book losses with every Bitcoin downfall while the long-term holders (LTHs) have started the accumulation. As per the on-chain data provided by Glassnode, the Net Unrealized Profits (NUPL) for long-term holders is at a make or breakpoint.
So far, a majority of the long-term holders (LTHs) are currently in profit. But what if they start booking the remaining unrealized gains? This could possibly mark the beginning of a bearish trend as per the historical chart patterns.
The Glassnode report adds that short-term holders (STHs) can continue to “be a source of sell-side supply moving forwards”. If the LTHs give up their accumulation and rather turn to sell, we are moving ahead in a bear market for sure. As per the technical charts, Bitcoin is suggesting a drop to $24,000 i.e. another 40% correction from the current levels.
Bitcoin On-Chain Settlements Shoot to $55 Billion Per Day
During the recent market correction, the Bitcoin network activity has surged once again. The Bitcoin on-chain settlements have moved past $55 billion per day showing that a large number of coins are on the move. This is nearly 60% more volume than what we saw during the 2017 market peak.
As Glassnode reports: “Throughout May, a total of 155k BTC have transitioned from an Illiquid state (HODLed) to Liquid or Highly Liquid state providing an estimate of the total ‘sell pressure’.”
However, since the Bitcoin price has dropped very past, the profits for long-term holders have trimmed significantly. The report notes that as a result of it, these players are unwilling to liquidate their holdings at such reduced prices.
So far, long-term holders (LTHs) have shown the conviction to accumulate at the current dips. But STHs are putting constant pressure by increasing their selling by 5x over the last few weeks. In this tug-of-war, it will be interesting to see who has the final call.
- Elon Musk Tweet: Tesla Accepting Dogecoin, But There Is A Catch!
- Chainalysis Report Claims Criminal Usage Of Cryptocurrency Will Decrease In 2022
- SHIB Bulls Cause Shiba Inu Prices To Skyrocket
- Strike App Faces Problems In Argentina; Does Not Support Bitcoin, Claim Users
- Crypto Exchange Bitfinex Tells Ontario Customers To Close Accounts After OSC Canada Cracks Its Whip
- Rio De Janeiro Plans To Buy Bitcoin With City’s 1% Reserve; Tax Discounts Also To Be Offered
- India Seizes $5 Million Worth Assets in $162M Morris Coin Crypto Ponzi Scheme
- North Korean Hackers Embezzled $400 Million In Cryptocurrency Last Year – Report
- Breaking: Elon Musks Tweets ‘Tesla Merch Buyable with Dogecoin’
- Crypto Exchange Binance Enables Direct Withdrawals to Ethereum Layer 2
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?