Bitcoin bull market data suggests no top $60K, selling activity declining

Bitcoin bull market in chain data shows that speculators and long-term holders are increasingly confident of higher prices as their sales activity has slowed significantly.

Bitcoin bull market sales activity is declining again.

Each BTC software market usually coincides with an increase in the number of short-term traders hoping to make a quick profit, while long-term traders add selling pressure to the second half of the market cycle to make a profit.

One of the best chain indicators to observe this trend in each cycle is called HODL. In this way, the length that each BTC address holds the Bitcoin before it is sold in the market is placed in buckets that are then visualized in different color bands.

For example, someone who has kept their Cryptocurrencies for five months will place a light orange bar in the 3m-6m bucket. If that person decides to sell, they get out of the bucket, and a dark red bar appears in the 24-hour bucket.

Bitcoin bull market sale activities on-chain

This means that the redder the HODL chart on a given date, the shorter the Bitcoin turnover occurs. This activity is almost lowest during the bear market and at its highest during the Bitcoin bull market, while short-term training is at its peak at the Bitcoin bull market.

The reflection of the realized value in HODL waves is critical. Because Bitcoin’s price fluctuates significantly during market periods and HODL waves makeup only the absolute number of Bitcoins transferred, this chart shows the BTC seller’s total value in a given day does not take.

As the profitability of handlers increases, it becomes more profitable. HODL waves can be measured by the realized price, the BTC price at which the last BTC averaged its previous buy/sell.

This adjustment allows you to visualize value-based profitability daily through colored buckets and value-adjusted terms.

The peaks of the Bitcoin cycle tend to form around the peak of short-term activity.

When HODL waves are weighed at the realized price, they are derived from the realized HODL Waves, a concept first proposed by chain analyst Hyperbole. These settings indicate that the top of the 1w-1m buckets coincides with each top of the Bitcoin bull market.

Bitcoin: Realize the HODL Waves Cap. Source: Glass node

This indicator shows that the current sales activity is not yet at the peak of the bull markets and shows that this trend is decreasing while the BTC price is still rising for the first time in the history of the Bitcoin market.

Bitcoin: HODL Waves cap 1d-1m. Source: Glass node

This is a very unusual trend in the Bitcoin bull market. Assuming that the price peak has not yet been reached. This indicates that profiteers, whether concentrated in the short or long term, expect to keep their Bitcoins again. With higher prices expected to rise as prices rise. Bitcoin pressure is squeezed in exchanges.

BTC sales activity is deficient compared to the maintenance period

Rafael Schultze-Kraft, Glassnode CTO, observes long-term handlers through Coin Days Destroyed. Showing a similar display that shows all the days of storage “destroyed” by Bitcoin holders.

Based on the 3-month moving average of this index. The destruction had reached the level that what last saw in the summer of 2019 at times when the price peak had already gone.

If the price is close to the bull market’s peak. The indicator value is expected to be much higher because long-term holders benefit from the size of the material, which is not the case at present.

Bitcoin cost behavior is lower than the market ceiling

When we further use this concept of Coin Days Destroyed and examine it according to the average value destroyed in terms of market capitalization. We come to the so-called dream flow. This is a concept invented by analyst and businessman David Money.

Bitcoin: Sleep flow regulated by the entity. Source: Glass node

Sleep flow describes the moving average annual Bitcoin’s spending behavior. It is based on retained value, which is lost in terms of total market value accumulated.

The index shows that the average 365-day Bitcoin behavior measured in USD is very healthy and much lower than previous costs in the Bitcoin bull market.

This is Bitcoin bull market rocket fuel

Bitcoin sales activity, whether for traders or long-term holders, is declining. While the annual behavior of market capitalization costs is surprisingly low. All of these data points in the chain indicate that the market is pushing harder for supply. This is one of the best rocket fuels that raises the BTC price.

However, this is not a guarantee because it requires a constant BTC price increase in this situation. Therefore, the demand of individuals and institutions for high-net-worth institutions should be monitored. As they have recently been a significant buyer factor.

Therefore, it can be concluded that although bitcoin sales activity is declining, both for traders and long-term owners. And this is one of the best rocket fuels that raises the BTC price. But capital Investors must prepare to take risks given the changes in this market. And on the other hand, use their intelligence.

References
https://cointelegraph.com/news/he Crypto-on-chain-data-suggests-no-…
https://www.nasdaq.com/articles/market-wrap%3A-bitcoin-stuck-below…
https://beincrypto.com/on-chain-analysis-is-this-BTC-bull…