Bitcoin started the new week by crossing $37,500, which some analysts described as the “last support point”, but it could not hold on to this level.
Many investors are worried that the 2021 bull market is over, but on-chain data reveals that long-term savers are ramping up their savings in anticipation of two peaks, as in 2013.
Sellers are short-term investors
In its weekly on-chain report, Glassnode examined the activity of short-term savers holding cryptocurrencies newer than 155 days and relatively new entrants, and long-term investors holding cryptocurrencies older than 155 days.
According to the Average Lifespan of Output Spent (ASOL) indicator (the average age of outputs spent on the day they were spent), long-term savers clung to their savings during the last price drop. The decline of ASOL to the levels below the accumulation range seen in the period when BTC was in the range of 50-60 thousand dollars also reflects this.
That short-term savers are behind Bitcoin sales can also be seen by comparing how much of the on-chain Bitcoin transfer volume is in profit (long-term savers) and how much is in loss (short-term savers).
According to Glassnode data, long-term savers started taking profits in the range of $ 10,000 to $ 42,000 in early 2021, while sales last week did not affect their spending patterns much. Long-term savers don’t usually come close to selling low.
Short-term savers, on the other hand, increased their sales fivefold in the last price drop, with the highest sales occurring during the current bottom price.
The short-term saver’s Profit Spent Ratio (SOPR) indicator also reveals that these savers, who bought BTC at higher prices, continued to make their losses by selling at a lower price.
“The current market structure can best be described as a battleground of bulls and bears, with a clear trend between long-term and short-term investors.”
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