On-chain Analyst: ‘Strong Hands’ Buying Bitcoin As Price Struggles
According to an on-chain analyst for Glassnode, Bitcoin (BTC) is moving into the ‘strong hands’ of long-term holders as its price struggles climbing back to previous high level.
The Glassnode analyst, known as TXMC on Twitter, shared with his 29K followers that BTC’s illiquid supply metric is rising despite the current price struggle under $60K level. The metric indicates the number the Bitcoin held by “strong-handed HODLers.”
“When strong hands stack during sell-offs, a bullish divergence appears.”
Illiquid Supply, the #Bitcoin held by strong handed HODLers, is once again growing in the face of price weakness.
This chart compares the 30-day rate of change of ⚪️Illiquid Supply Shock to price.
At the time of writing, Bitcoin is trading at $57,076 with 1.2% gains on a weekly chart.
The pseudonymous analyst also looks into the spent output profit ratio (SOPR) metric, which indicated if the market participants are selling at a loss or profit.
According to TXMC, Bitcoin’s SOPR also bounced up at break-even point.
“Spending resets occur in the corrections of macro rallies, as lettuce-handed top buyers are shaken from the tree.
A bounce can hint at upside continuation based on history. Similar bouncing was seen in the 2017 bull run.”
Spent coin profitability caught a bounce at break even.
Spending resets occur in the corrections of macro rallies, as lettuce handed top buyers are shaken from the tree.
A bounce can hint at upside continuation based on history. Similar bouncing was seen in the 2017 bull run. pic.twitter.com/Nc3FMwXO56
