According to on-chain analytics firm Glassnode, Bitcoin short-term holders are experiencing the desire to sell their BTC at $30,000, as tens of thousands of coins were sent to exchanges.
The cessation of BTC’s price at $30,000 has led to buyers reconsidering, particularly short-term holders (STHs) who have held their funds for 155 days or less, and these holders have a strong desire to sell.
Glassnode observed an increase in funds being offered for trading from STHs, who typically represent more speculative investors, by monitoring inflows to exchange wallets, which is most likely due to the recent price increase of Bitcoin. Glassnode noted that the positive price action of Bitcoin has attracted more attention from short-term holders who have increased interaction with exchanges.
The chart that comes with the report shows a comparison between the inflows currently seen and those that occurred during the 2022 bear market.
The chart indicates that short-term holders are more likely to sell a significant amount of their BTC during price drops to prevent significant losses, while profit-taking activities, which is being observed at present and was seen in March when the BTC/USD first reached $30,000, have brought about lower exchange volumes in general.
These numbers indicate that speculative interest in Bitcoin continues to be unpredictable and incredibly responsive to even minor price fluctuations. Despite this volatility, short-term holders have emerged as a significant driving force in the market during 2023.
As previously mentioned by Cointelegraph and Glassnode, the aggregate cost basis of short-term holders, which was roughly $26,500 this month, has acted as an influential support level. Furthermore, on-chain analysis has anticipated that in case the BTC price surges again, there could be a powerful desire to take profits among the holders.
Based on historical data, when the aggregate STH profitability reaches 20%, a pattern of selling usually begins. Thus, anything over $33,000, which is much higher than the current breakeven point of $26,500, could result in a noteworthy shift in holder composition. At present, the latest data shows STH profitability at 10%, and their coins’ realized price, which is their last moved price, above $27,000.
