Bitcoin’s push above the coveted psychological level of $20,000 came after gains of nearly 10% over the past 24 hours.
After a massive profit-taking session, traders anticipating the threshold started selling their bags, according to Santiment data.
📈 Apparently, many traders were waiting for the $20,000 threshold to start selling their bags. How #Bitcoin crossed back above this psychological level, massive profit taking occurred. Now we find out if those eager to sell will regret their decisions. https://t.co/k5o3UpZGfY pic.twitter.com/kXXbCSz05Y
— Santiment (@santimentfeed) September 27, 2022
- Despite a certain section unloading their Bitcoins, the HODlers seem to have held firm, while several metrics now point to a full-cycle detox.
- The latest edition of Glassnode’s weekly report stated that a cohort of investors with older coins have held on to their tokens, “refusing to spend and exit their position on any meaningful scale.” In addition, he noted,
“While this is constructive as it shows HODLer conviction, with such a lackluster demand profile as a backdrop, this observation can best be interpreted as HODLers stocking up for future storms.”
- The HODling trend has remained unchanged even in the wake of uncertainty in global markets, as the wealth of mature coins hit an all-time high.
- The Bitcoin market is entering a phase of relative stability which means it is approaching a complete detox of speculative interest and could be approaching a user equilibrium baseline as shown by the metric of the average transaction volume which seems to be in the process of constantly flattening.
- After last year’s Great Migration of Miners, there has been a major reset in terms of network adoption, which recently collapsed.
- This essentially highlighted that an “appreciable recovery” may not be happening and that the decline in the influx of new users to the network is palpable.
- Another factor hampering the recovery is the retail crowding out that has been seen since the migration and is still in place, a purge similar to that which occurred during the bear market of 2018.
- Upon further inspection of network activity through mining revenue from fees, Glassnode found that the Bitcoin network remains in an extended muted fee regime, thus confirming that demand recovery is still it is not running.
- For now, the report suggests that Bitcoin network activity remains a barren wasteland, as adoption of the new entity fell below cycle lows concurrent with a complete exodus from retail participation.
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