According to analytics firm Glassnode’s latest edition of its weekly newsletter, “The Week On-Chain,” Bitcoin speculators may sell their investments if the BTC price goes beyond $33,000. Short-term holders (STHs), who are more speculative investors, have returned to the spotlight this year, and their aggregate cost basis has been observed to form wider BTC price support around $26,000. However, Glassnode warns that the opposite effect could soon occur as part of its coverage of short-term holder (STH) and long-term holder (LTH) activity.
The market value to realized value (MVRV) metric is used by Glassnode to determine at what levels speculators should take profit en masse. Once the STH-MVRV passes 1.2, the danger of profit-taking historically becomes a reality.
Glassnode also reinforced the idea that recent lows near $25,000 flushed out those looking to sell based on data from the Spent Output Profit Ratio (SOPR), which looks at the relative profitability of BTC moving on-chain.
“The Week On-Chain” Explanations
“The risk of market corrections tend to rise when this metric exceeds levels of between 1.2 (~$33.2k) and 1.4 (~$38.7k), as investors come into increasingly large unrealized profits,” Glassnode explained.
Bitcoin Short-Term Holder MVRV chart
(screenshot). Source: Glassnode
“Seller Exhaustion” at $25,000
Further data reinforces the idea that recent lows near $25,000 flushed out those looking to sell. The Spent Output Profit Ratio (SOPR) repeatedly showed what Glassnode calls “exhaustion” among sellers at or near that level.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.