Bitcoin rejected nearly $37,500, and on-chain data shows that short-term holders surrendered


Bitcoin started this week with a sudden bullish breakout to $37,500. Some analysts believe this level is The vital “sand center line”, But the rebound was short-lived because BTC suffered a sell-off near the market. The lower arm of the bearish pennant Can be seen in multiple time frames.

Although many traders worry that the 2021 bull market is over and consider whether they should lock in gains, the data on the chain shows that long-term Bitcoin (Bitcoin) The holder has been preparing for potential preparations 2013 double pump It is possible to raise BTC to an all-time high.

BTC/USDT 1-day chart. source: Transaction view

ether(ETH), on the other hand, since the chat about the possible “diving” between Bitcoin and Ethereum is still a topic of discussion, it rose by 8% to $2,677.Recently, Bloomberg speculated Ether may one day surpass Bitcoin As the preferred cryptocurrency in the world.

Short-term holders are selling

Further insights into the causes of market uncertainty can be found in Glassnode’s latest “Weekly Online” report, which studies the activities of short-term holders (STH) who are newer market participants and hold There are younger tokens for more than 155 days, and long-term holders (LTH) who hold coins for more than 155 days.

According to the Average Expendable Output Life (ASOL) indicator, which can be used to understand the average age of all UTXOs spent on the day, LTH is mainly maintained through recent declines, such as the sharp drop in ASOL to “fall to between $50,000 and $60,000.”

The average spent output life of Bitcoin. source: Glassnode

By comparing the number of bitcoin transfers on the chain of profit (LTH) and loss (STH), we can find further evidence to prove the STH behind the sell-off.

According to Glassnode data, people saw LTH rise from US$10,000 to US$42,000 in a rebound in 2021, and then its spending “reached a fairly stable benchmark”, and last week’s sell-off “has little effect on its spending pattern” suggests that “LTH Usually reluctant to liquidate coins at reduced prices.”

In contrast, STH’s behavior “increased its spending by more than 5 times during the sell-off period, and the largest spending occurred near the current lows in the local market”.

Evidence of this can also be found in the review of STH’s Spending Output Profit Rate (SOPR). SOTH continues to realize losses by consuming coins accumulated at higher prices at higher prices at current lower prices. Indicate surrender.

Short-term Bitcoin holder SOPR. source: Glassnode

According to Glassnode: s

There is no doubt that the current market structure can be said to be a battlefield between longs and shorts, with a clear trend between long-term and short-term investors. This is a battle between HODLer’s conviction and immediate purchase of power. “

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