Glassnode analyst @_Checkɱate pointed out that the situation of Bitcoin breaking through its historical high this time is similar to previous ATHs. Long-term holders have started to sell their BTC using the new influx of demand, driving the price to multiply within 6 to 8 months.
(Bitcoin’s Next Bullish Trend Approaching as EMC Labs: “First Wave of Selling in the Bull Market” Comes to an End!)
(Background Information: PlanB Predicts Halving Market: Bitcoin to Rise to $100,000 This Year – Currently in the Early Stage of the Bull Market, Expected to Last for a Year)
After surpassing the historical high of the 2021 bull market at $69,000, Bitcoin (BTC) reached a new all-time high of $73,777, signaling a strong bull market. Despite recent volatility and pullbacks, it surged to $70,000 in the early morning today, with a current price of $69,648, a 0.3% increase in the past 24 hours.
With the upcoming halving of Bitcoin in the middle of the month, the market is closely monitoring which stage of the bull market BTC is in. In response to this, Glassnode analyst @_Checkɱate recently posted on Twitter, suggesting that clues can be found in the “position of long-term holders.”
Glassnode Analyst: Bull Market Progress Seen from Supply of Long-Term Holders
According to @_Checkɱate, the situation of Bitcoin breaking through its historical high this time is almost the same as previous ATHs, with long-term holders starting to sell their BTC using the new influx of demand and liquidity. These smart investors buy at lows and sell at highs.
Further Reading: 1,500 Millionaire Cryptocurrency Traders Born Every Day in the Bull Market! Kaiko Analysis: BTC Traders Profiting from Cashing Out
The supply of long-term holders (holding for more than 6 months) has significantly decreased, similar to the previous two bull market cycles, while the BTC price continues to rise. Source: @_Checkɱate
The supply of long-term holders of Bitcoin has decreased by approximately 6% currently. Source: @_Checkɱate
GBTC accounts for about 25% of long-term holder expenditures.
@_Checkɱate also added that the flow of funds in Grayscale’s GBTC and other Bitcoin spot ETFs is similar to the distribution of supply from long-term holders after breaking ATHs in previous cycles. According to calculations:
GBTC (red in the figure below) accounts for about 25% of LTH expenditures (blue in the figure below).
ETF demand (green in the figure below) accounts for about 40% of net capital inflows (yellow in the figure below).
If @_Checkɱate’s judgment is correct, along with the continuous net inflow of spot ETF funds and the halving narrative, the BTC price is expected to reach new highs.
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