Kataryna Habeliia December 7, 2020
Why Hasn’t Bitcoin Reached the Top yet?
Bitcoin price started its upward movement in November and is now holding above $ 19,000. However, at the same time as the price went up, long-term shareholders started making profits.
The indicator of the average withdrawal time noted the movement of long-purchased coins, which indicates that long-term holders are making a profit.
Currently, this indicator is at a high level, see the chart above.
The rise in prices boosted the total profit margin and showed that most long-term holders bought less than $ 10K of their BTC and held it for most of the recent bull run.
At the end of November, the average withdrawal period indicated that some long-term holders stopped walking and started making profits around this time, the Glassnode report says.
For some, this could be alarming news, but it was definitely not a bearish signal.
Long-term holders take profits periodically, before and during bullish rallies. Because of this, the total number of longtime owners dropped markedly before the market peaked. This trend can be seen in the chart below.
Long-term investor sales reduce the price somewhat and allow new retail investors to enter the market. Buying investors of both categories together with organizations means that the top has not yet been reached.
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