Bitcoin (BTC) is moving into the hands of long-term holders amid its weak price action, according to an on-chain analyst at the crypto analytics firm Glassnode.
The pseudonymous analyst TXMC tells his 29,200 Twitter followers that BTC’s illiquid supply, the Bitcoin held by “strong-handed HODLers,” is rising even as the largest crypto asset by market cap struggles below $60,000.
“When strong hands stack during sell-offs, a bullish divergence appears.”
Bitcoin is trading at $57,447.06 at time of writing, up about 0.9% from a week ago.
TXMC is also keeping a close watch on the spent output profit ratio (SOPR) metric, which looks at whether market participants are selling at a profit or a loss.
The on-chain analyst notes that Bitcoin’s spent coin profitability also bounced upwards after hitting a break-even point.
“Spending resets occur in the corrections of macro rallies, as lettuce-handed top buyers are shaken from the tree.
A bounce can hint at upside continuation based on history. Similar bouncing was seen in the 2017 bull run.”
Fellow on-chain analyst Will Clemente tweets that Bitcoin also had a “nearly textbook bounce” off its bull market support band. However, he’s not positive Bitcoin is ready to turn bullish yet.
“To check our bullish bias though: Still need to reclaim $61,000, still haven’t closed daily yet, and also need to see how legacy markets react tomorrow. Definitely not out of the woods yet.”
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