Short-term holders of Bitcoin (BTC) feel the need to sell BTC at $30,000, data shows.
researching freed On June 28, on-chain analytics firm Glassnode flagged tens of thousands of tokens being sent to exchanges.
Bitcoin Speculative Trading Activity ‘Intensifies’
BTC price action has stalled at $30,000, prompting buyers who have made money this month to rethink.
In particular, short-term holders (STHs) — those entities that hold funds for no longer than 155 days — are becoming increasingly keen sellers.
Monitoring the inflow of funds into exchange wallets, Glassnode found a clear surge in transaction funds from STH, which correspond to Bitcoin’s more speculative investor base.
“The recent excitement over Bitcoin’s price action has prompted increased interaction with exchanges by short-term holders,” it commented.
“Currently, inflows to STH exchanges are intensifying, with 1.28% (+35.4K BTC) of STH supply sent to exchanges.”
The accompanying chart differentiates between current inflows and inflows during the 2022 bear market.
It shows that during periods of BTC price suppression, STH is more inclined to sell en masse to limit losses. On the other hand, as seen now and in March when BTC/USD first returned to the $30,000 mark, profit-taking led to lower overall trading volumes.
Realize 10% profit
The data marks the latest signal that speculative interest in bitcoin remains volatile and highly sensitive to smaller price movements.
Related: Bitcoin Holds Hold at $30,000 as Fed Powell Emphasizes More Rate Hikes
Nonetheless, STH has emerged as an important market force in 2023.
As Glassnode and Cointelegraph previously pointed out, their total cost base (around $26,500 earlier this month) remains intact as support.
Meanwhile, on-chain analysis predicts that if BTC prices return to the upside, the urge to profit could quickly become overwhelming.
Historical data shows that the sell-off begins once STH profitability hits a total of 20%, relative to the current breakeven point of $26,500, which means that any price much higher than $33,000 could trigger a major shift in holder composition.
current data Showing a profitability of around 10% for STH, its realized price (the price at which the STH token last moved) is now over $27,000.
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This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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