• Short-term Bitcoin (BTC) holders are unwilling to sell their BTC amid the ongoing crypto market doldrums
• Glassnode’s Bitcoin Short-Term Holder Sell-Side Risk Ratio metric shows that coins are not being revalued
• Bitcoin is trading at $28,593 at time of writing, down by more than 2% in the past 24 hours
On-Chain Indicator Shows Short-Term Bitcoin Bulls Unwilling To Sell
The analytics firm Glassnode has looked at a metric that analyzes the amount of Bitcoin (BTC) that has moved in the past five months. The metric takes the sum of all profits and losses realized on-chain in that cohort and divides it by its realized cap, which represents the value of each Bitcoin when it last moved rather than its current market value. By and large, short-term holders aren’t spending right now, regardless of whether they’re in profit or they bought the local top. Additionally, Bollinger bands (BB) measure an asset’s price and volatility oscillation over time.
Glassnode Metric
Glassnode’s Bitcoin Short-Term Holder Sell-Side Risk Ratio measures how much BTC has moved in the past five months and divides it by its realized cap – representing the value of each BTC when it last moved rather than its current market value. This indicates short term holders are unwilling to sell their BTC despite market conditions.
Bollinger Bands (BB)
Bollinger bands measure an asset’s price and volatility oscillation over time. They can help determine if an asset is reaching a local high or low or if further movement is likely on either side.
Price Action
At time of writing, Bitcoin is trading at $28,593 – down by more than 2% in the past 24 hours. The cryptocurrency appears to be stuck in a range with little motivation for short term holders to spend their coins given current prices remain below most recent highs.
Conclusion
Short term holders appear to be unwilling to sell their BTC despite ongoing crypto market doldrums as indicated by Glassnode’s metrics and Bollinger Bands analysis. Therefore there may be a need for something else to change before investors become motivated enough to spend again as prices remain below most recent highs.