Bitcoin (BTC) investors are notorious for their ability to “manipulate” price falls, but new data sheds light on how long they may be willing to go.
In a tweet on January 16, the analysis company Glassnode noted that the holder’s behavior is currently mimicking bitcoin in the less extreme part of the price cycle.
Risk reserve: Bitcoin price is ‘low’, scammers make money
Referring to the Reserve Risk Scale (R-Risk), Glassnode argued that current buying and selling trends are not general high or low trends.
He explained, “Low R-risk values are typical of medium to moderate cycles when prices fall, but HODL dominates the network.”
R-Risk looks at how many days owners prefer not to sell against the current price movement, which among other things indicates market sentiment at a given price point.
At the moment, R-Risk is on a downward trend and is flirting with the “low” zone.
A visual chart of the risk of bitcoin reserves. Source: Glassnode / Twitter
In an explanatory article that was originally linked to the scale, Glassnode also said that such movements take more time than less to resolve, which in turn suggests that an event like this half-cycle explosion peak may be out of reach.
“The reserve risk oscillator can be seen in line with normal beef / bear market cycles. It has well-defined heights that coincide with the peak of the explosion, and long periods of relative decline below the bottom of the bear market and at the beginning of the bull market,” he sums up.
Miners cool off from a “huge” backlog
The data is in line with the general impression of long-term Bitcoin providers that double their faith in the face of an unexpected downward trend.
Related: Bitcoin falls 8% from high as trader asks BTC Bulls for $ 37.5k back
Depending on the source, this correction period actually lasted throughout 2021, and as the Cointelegraph reports, there are no signs of errors in the old hands.
Meanwhile, data from associate research firm CryptoQuant shows that miners, who have also been accumulating “significantly” in recent months, began to keep reserves flat in January. One possible reason could be the inclusion of bitcoins in production costs, which reduces profitability.