Old hands are selling their Bitcoin holdings, according to Glassnode's Coin Dormancy metric.
As shown below, dormant addresses selling BTC marked previous tops in BTC. On-chain analyst Willy Woo said old hands reliably sold the top until the most recent price cycle.
"Dormancy is a measure of 'old hands selling out.' It's interesting to see old hands reliably sold tops until this present cycle. They sold the #bitcoin bottom at $3-$4k, they are selling right now."
Will the dormant Bitcoin HODLers be proven right this time?
Atop the various technical reasons, there are cyclical reasons that could encourage dormant Bitcoin holders to sell.
"Bitcoin's cyclical behaviour is difficult to escape from. Same week 4 years ago, Bitcoin was trying to finally break the 50% bear market fib retracement. It never looked back after that & tested ATH by January. This time it's different?".
Following the high-profile investments in Bitcoin from MicroStrategy and Square, the institutional demand for BTC has increased noticeably.
Various fundamental metrics signify strengthening momentum, including the Bitcoin hash rate.
On Oct. 19, the Bitcoin hash rate hit a new all-time high once again, which is a highly optimistic trend, especially after the May 11 halving.
"Bitcoin hash rate hit new all time highs. The recent price rally has increased mining revenues, pushing more miners to allocate greater resources to the network, thereby increasing hash rate. What ever happened to that mining death spiral thesis after the halving?".
'Old hands selling out' metric shows Bitcoin price at risk of HODLers dumping
Published on Oct 19, 2020
by Cointele | Published on Coinage
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