An on-chain analyst at Glassnode says that Bitcoin (BTC) investors are likely to sell some of their coins before the crypto king’s halving in April.
In a new video update, Glassnode’s pseudonymous lead analyst Checkmate says that Bitcoin has yet to experience any significant corrections during the latest bull run, indicating that BTC holders may be quicker to take profits.
“We have barely had a 20% correction, certainly on a closing basis, since the FTX lows. So it’s really showing that the market structure in this cycle is substantially [seeing] a lot more buy-side [pressure], we’re just not seeing the kind of depth of correction.
With that said, after a 175% rally and after all the excitement and potentially with some sell-the-news [sentiment] coming into the halving event, which is in April, these are the kinds of events where investors are likely to take some chips off the table.
They know that the halving is one of these events. But again, the ETF was kind of an initial sell-the-news [event] but quite clearly didn’t pan out that way over the medium term.”
The analyst goes on to note that BTC’s latest price spike is the result of two catalysts.
“Looking at the market structure, we can really see that the corrections have been much, much shallower, which tells us that there has been this two-sided effect: fewer people distributing coins coupled with increased buy-side pressure… Both sides of the equation have helped [BTC’s] price move forward.”
Bitcoin is trading for $67,071 at time of writing, an over 4% increase in the last 24 hours.
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