Old Hands sells Bitcoin (BTC) holdings according to Glassnode’s Coin Coin scale. As seen below, the bearish headlines that sell BTC refer to previous highs in BTC.
Chain analyst Willie Wu said Old Hands had reliably sold top through the last price cycle. he wrote:
“Calm is a measure of selling old hands. It’s interesting to see that old hands have consistently sold peaks up to this current cycle. They have sold bitcoin floor # from $ 3 to $ 4,000, and they are selling now.”
There are many reasons why old owners would sell BTC at the current price. BTC’s price has tripled since March and is a decent profit range for sellers. The $ 12,000 area has been a strong resistance for the past two months.
Will HODLers be dormant in Bitcoin this time?
Aside from the various technical reasons, there are cyclical reasons that might encourage dormant bitcoin holders to sell.
Bitcoin has posted negative returns for the last two quarters. BTC’s tendency to perform below par in the last quarter along with the $ 12,000 resistance could force its owners to take profits.
However, some technical analysts believe that Bitcoin is about to start a new cycle. In the coming months, BTC could continue to climb to higher resistance levels and not see a significant drop.
Filbfilb, a famous cryptocurrency analyst, pegged the cycle after the halving in 2017. He said that after the outbreak, BTC reached an all-time high of four years in the same week. he wrote:
“It’s hard to circumvent the cyclical behavior of Bitcoin. In the same week 4 years ago, Bitcoin tried to break a bearish market retracement rate of 50% forever. After that, it didn’t look back and test ATH until January. Is it different this time?”
The trader also noted that institutions appear to be craving record-breaking bitcoins. After notable investments by MicroStrategy and Square in Bitcoin, institutional demand for BTC has increased significantly.
The size of the institutional platforms including Bakkt and LMAX Digital has grown significantly in recent weeks. Filbfilb has been added:
“Although not a lot of OI volume traders – the institutional ones were long only last week.”
The technical setup for BTC is bearish in the short term, but the fundamentals are strong
Most of the short term bearish signals for Bitcoin are technical signals, not fundamental. Various fundamental metrics indicate stronger momentum, including Bitcoin’s hash rate.
On October 19, the bitcoin hash rate reached a new all-time high. This is a very bullish trend, especially after the halving on May 11th. John Todaro, cryptocurrency venture capitalist, said:
“The bitcoin hash rate (again) has reached new highs. The recent price hike has increased mining revenues and prompted more miners to allocate more resources to the network, which has increased the hash rate. What happened to this thesis about the miner’s vortex after the halving? “