Bitcoin hodlers increased their sales

Upon reaching a new ATH above $73,100, the daily rate of realized profits on Bitcoin positions exceeded $2.6 billion. According to Glassnode, the reason was increased distribution by long-term investors.

As the #Bitcoin market hits resistance at a new ATH of $73k, the Long-Term Holder cohort have ramped up their overall distribution pressure.

The market is currently seeing over $2.6B/day in realized profit, as investors start to take chips off the table.

Discover more in the… pic.twitter.com/YHXRnbUnFR

— glassnode (@glassnode) March 26, 2024

The retracement from the 15.4% ATH to $61,800 followed by the recovery to $70,000 (in black on the chart below) is highly consistent with the trajectory of the previous cycle (in blue).

Both in terms of duration and distance from the April 2021 peak, the market is almost at the same level as in December 2020 relative to the 2018–21 cycle.

Experts noted that quotes reached resistance in the form of one standard deviation upward from MVRV. This indicates a statistically significant large amount of unrealized profits. As in previous cycles, this situation often coincided with a wave of closing of long positions, they added.

The rollback from ATH transferred about 2 million BTC to the “unprofitable” category. This value gives an idea of ​​the volume of coins that were sold at the new increased price, experts emphasized. The recovery to $66,500 returned half of that figure to “profit.”

Based on such calculations, analysts came to the following conclusions:

• the “cost price” of 1 million BTC ranges from $61,200 to $66,500;
• the cost of acquiring the next 1 million BTC is distributed in the range from $66,500 to $73,200.

These are the largest supply clusters since the 2022 lows, indicating an increase in on-chain activity in recent months.

Four different versions of the SOPR indicator indicated an increase in the volume and amplitude of profit taking. The metric, adjusted for related parties, has even reached the values ​​​​observed at the height of the 2021 bull market.

With the ATH reached, the daily volume of realized profits increased to $2.6 billion. The last time such high values ​​were observed during the peak of the bull market in 2021. 40% of this value came from long-term investors, including holders GBTC from Grayscale.

The remaining $1.56 billion was formed by the actions of speculators who took advantage of the influx of liquidity and positive momentum.

The increase in the share of HODLers in profit taking as higher price levels are reached is consistent with previous Bitcoin cycles.