- The BTC price touched the $25,000 mark last week for the first time since June 2022.
- The on-chain activity suggested that investors expected prices to move beyond that point soon.
Amid tighter regulatory oversight and negative investor sentiment, bitcoin (BTC) Last week, the price temporarily traded above the $25,000 price mark.
While this represented new price action for King Coin for the first time since mid-June 2022, Glassnode reported a new Reportfound that BTC on-chain investor activity seemed to be at the peak of a new cycle, signaling a potential turning point.
Reading Bitcoin (BTC) Price Prediction 2023-2024
A resurgence of the “buy the dip” mentality?
As BTC trades below $25,000, on-chain activity has shown that investors are expecting the leading coin to regain price position and have begun “drop buying” in anticipation of the same.
Glassnode evaluated BTC’s short-term holders’ dormancy metric at the 30-day moving average and found that in the current market, short-term holders are “spending the coin with longer holding periods.” according to the report:
“This is commonly seen in bullish momentum, as earnings expectations encourage investors to wait a little longer and take advantage of market swings.”
With the year so far marked by a significant jump in the value of BTC, many investors have started to turn a profit. Profit taking has slowed as most anticipate a retest of the $25,000 price. Also, selling pressure has eased, Glassnode found. This was done by estimating the adjusted earnings-to-expense ratio (ASOPR) of BTC.
According to Glassnode Academy, the SOPR metric provides insight into macro market sentiment, profitability, and losses over a specific time period. ASOPR excludes all transaction volume for coins less than 1 hour old.
according to the report:
“Overall, this indicates a reduction in selling pressure and a possible return to the ‘buy the dip’ mentality. A strong retest of the SOPR and a bounce above 1.0, especially at a longer-term moving average (eg, 14D or 30D), is often indicative of a changing market regime.
Source: Glassnode
Finally, regarding long-term holders of BTC, Glassnode found that the recent rally in price has reduced the amount of losses recorded by this investor group.
According to the report, in terms of the actual value of coins sent to exchanges, long-term holders at losses have seen a dramatic decline from the cycle peak of 58% in mid-January to 21%.
How much they cost 1,10,100 BTC worth today?
According to Glassnode, this means that these investors are regaining confidence in the market and are less likely to sell their coins at a loss. This is generally seen as a positive sign for the market, as it shows that investors are becoming more optimistic about the future of their investments.
Source: Glassnode