A significant portion of cryptocurrency investors are evaluating current levels for short-term trading. But what about long-term investors? Are current prices attractive for buying according to on-chain readings? The comments of a famous cryptocurrency expert and the latest Glassnode report provide answers to many questions regarding the upcoming major movement.
Is it Time to Buy BTC and Altcoins?
According to the latest on-chain data, Bitcoin at the $30,000 level is the most popular “buying” level so far. According to the figures from the cryptocurrency analysis firm Glassnode, a record amount of BTC has changed hands near the current spot price.
While the king crypto may seem anchored at the $30,000 level, buyer behavior indicates significant demand for the largest cryptocurrency. Glassnode, which tracks Unspent Transaction Outputs (UTXOs), highlights the surge in interest at the $30,200 level. The numbers come from the firm’s UTXO Realized Price Distribution metric. It counts UTXOs but excludes two important transaction types that could give a false impression about demand.
“In this calculation, we ignore coin movements between addresses controlled by the same entity, as these transfers do not correspond to real purchasing events and distort the actual average purchase price. Additionally, we exclude all supply on exchanges, as a single average price for the funds of millions of users would be misleading and introduce unwanted artifacts into the data.”
As a result, 3.8% of the total BTC supply moved at the recent $30,200 level.
Cryptocurrencies Will Move
The movement of a significant portion of the supply recently is highly important. Even during the FTX crash, which caused a move to the bottom zone, such a level of high volatility was not observed. Popular crypto expert Mikybull Crypto commented, “A big move is coming,” as part of his reaction to the data set showing similar figures.
On-chain data supports the idea that existing investors are not interested in selling their assets despite the doubling of the BTC price this year. Glassnode’s Hodled or Lost Coins metric, which covers the group defined as Bitcoin’s “old and large hodlers,” continues to move towards new record levels. Hodled or Lost Coins is based on the idea of the “liveliness” of the Bitcoin network, how much of the supply is inactive, and how much is moving after a certain period of dormancy.
This data gives an idea of how much of the supply is stagnant, including how much cannot be accessed permanently due to, for example, wallet owners losing access to their investments. The Hodled or Lost Coins segment currently contains approximately 7.77 million BTC worth $233 billion. This figure is the highest in the past five years. Estimates have long suggested that up to 20% of Bitcoin may have permanently left circulation.
In conclusion, increasing demand, reluctance to sell, and other developments indicate that a major rally could occur soon.
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