- Glassnode published their latest insights on their blog.
- BTC’s recent rally has seen it reclaim several cost-basis models.
- The market leader’s price is up over the last 24 hours.
The blockchain intelligence firm, Glassnode, published its latest insights for the crypto market on its blog on Monday. In the blog post, the firm analyzed if the recent rise in Bitcoin’s price should be seen as an opportunity or if it is just a trap.
To formulate its conclusion, the report analyzed several on-chain and technical metrics, and mainly focused on how the recent shift in profitability plays a role in changing the behavior patterns of market participants.
An analysis of several price models revealed that the recent rally in BTC’s price has reclaimed several cost-basis models and pushed the proposition of supply held at a profit into “more favorable territory,” the report added.
Investors were issued a warning, however, given that the “allure of profits after an extended bear market tend to motivate supply to re-enter liquid circulation.” Analysis performed by Glassnode, revealed that short-term holders and miners have been motivated to liquidate a percentage of their holdings.
There is some hope, on the other hand, given that the supply held by long-term holders continues to grow. The report concluded that paying close attention to the spending behavior of long-term holders would be a key toolset to track over the coming weeks, given their effect on the macro trend.
The market leader’s price is trading at $23,000 at press time following a 1.13% gain over the last 24 hours, according to CoinMarketCap. This 24-hour gain has elevated BTC’s weekly performance to +10.37%.
BTC’s market cap has also risen as a result of the 24-hour gain and currently stands at an estimated $443,684,440,286.
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