According to on-chain analysis, Bitcoin is undergoing a transfer of wealth from experienced long-term holders to new investors, indicating that the market cycle is at a turning point. Glassnode, an on-chain analytics provider, used HODL waves to identify the transfer of wealth between different groups and found that this phenomenon is typical across cycle inflection points. Consequently, there is a possibility that Bitcoin is transitioning to a bullish market as new investors enter the market.
The 1-day to 3-month Bitcoin HODL band has spiked, representing an 86% increase from 11.5% to 21.4%. Philip Swift, a Bitcoin analyst, predicts that BTC prices will begin to move up as this wave goes down, as HODL’ers who accumulated coins at low prices begin to sell at higher rates.
Additionally, Bitcoin prices have risen above several key long-term indicators. Currently, BTC is above the 200-week moving average, which provides historical support at $25,818 and was broken in December. The Realized Price of $19,914 indicates the value of all coins in circulation at the price they last moved, and it can be seen as an approximation of what the entire market paid for their coins.
Despite predictions of increased volatility due to a long period of low volumes, Bitcoin remains in consolidation, trading at $26,952. The support is currently at $26,200, with lower levels at $25,000, whereas Bitcoin would require breaking the $28,000 resistance to see significant gains.
Disclaimer
This article is for informational purposes only and should not be considered as financial or investment advice. Bitrabo is dedicated to precise, impartial reporting. Nevertheless, market conditions are subject to change without notice. Always do your research and seek advice from a professional before making financial decisions.
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