Bitcoin’s price fell below its support level of $ 54,000 earlier today, leading to market-wide speculation that the bull run may slow.
What happened: According to CoinMarketCap, the market-leading cryptocurrency hit a low of $ 53,470 and fell over 7% from its 24-hour high of $ 57,382.
Some on-chain analysts suggested that the bull run would resume after this correction, although the general sentiment was largely mixed as data suggested that the largest Bitcoin holders were selling.
According to Glassnode, a provider of on-chain analytics, Bitcoin whales’ wallets were “comparatively flat” despite smallholder farmers increasing their holdings of digital assets.
Large wallets with a capacity of over 100 BTC have turned out to be relatively flat, net, over the past three years. In fact, these wallets holding between 1,000 and 10,000 BTC have been found to have decreased their holdings by 307,000.
“As the price rises, so does the incentive to sell and realize these profits. As a result, HODLers typically spend their coins when Bull Markets makes progress, ”said Glassnode analysts.
Why it matters: The fact that some larger owners are now taking profits seems to suggest that the Bitcoin bull market cycle is no longer in its early stages.
The analysts also found that with each new bull market cycle, a larger portion of the Bitcoin supply was blocked by long-term holders. In the “Peak HODL” phase of the current bull market, over 75% of the coin supply was secured by long-term holders.
“After Peak HODL, we’re seeing profits decline faster than new HODLers,” said Glassnode, referring to a chart showing the recent decline in Bitcoin prices.
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