Unspent Bitcoin issues hit new highs. What's next - News-Credit-Mortgage-Coin

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Sunday, February 21, 2021

Unspent Bitcoin issues hit new highs. What's next

 



Bitcoin's price has hit several new ATHs in a short period of time since it topped $ 20,000 in December 2020. The asset is now trading at $ 56,244, up 5 percent in the past 24 hours and up over 20 percent in the last week. Based on data from Glassnode, it's not just price or market capitalization that hit new highs two days in a row. A lesser known metric - BTC percent UTXOs in profit (7-day moving average) hit a monthly high of 99.967%.



This metric highlights that the sentiment is currently bullish though on-chain analysis signals the opposite. To read between the charts, check out the Bitcoin Active HODL waves chart, since HODLing patterns have changed faster than in previous price rallies.






The HODL waves in the table above represent the changing cross-section of Bitcoin held in wallets grouped according to when they were last moved. Based on how the waves have changed, particularly in the case of Bitcoin, which has been held for 7 years and less than 180 days, it is clear that the change has occurred since the price exceeded $ 30,000. As Bitcoin was rangebound, the HODLing pattern began to change as more HODLed Bitcoins came to the exchanges and new buyers HODLing on retail exchanges or cold wallets.

In addition to a transition in bitcoins stored in wallets, the outflow of bitcoin from exchanges has increased, indicating a supply bottleneck. In connection with increasing exchange rate outflows, it was found that stable coin inflows have also increased. In contrast to increased stable Bitcoin inflows, Bitcoin inflows to the exchanges have remained low. This leads to a bullish narrative similar to that seen in the final quarter of 2020.

It is expected that the HODL waves will continue to pass and that further institutional investments will be added. MicroStrategy has officially closed the sale of the senior convertible bonds and $ 609 million would be used to buy Bitcoin. Sustained demand generation from the institutional side could ensure the price continues to rise, and as more retailers buy above $ 50,000, there is a greater likelihood that those investments will be pushed through the current cycle, which will help Bitcoin maintain its price.

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