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Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) breached $50,000 on Feb. 12 for the first time since December 2021 after rallying 15% in February.
However, as shown on the daily chart, BTC currently faces overhead resistance at $50,000, and the price retraced by over 2% on Feb. 13 after the United States <a href="https://cointelegraph.com/news/bitcoin-price-drops-hot-cpi-markets-fed-rate-cut">Consumer Price Index report indicated</a> 3.1% annual inflation, which was higher than the consensus expectation. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/0ed8de5a-3bf2-49c3-ab82-7b39fed67a6a.jpg" alt="" title="">
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 BTC/USDT chart. Source: TradingView
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<h2 data-ct-non-breakable="true" id="bitcoin-is-close-to-another-transitional-phase">Bitcoin is “close to another transitional phase”</h2>
Bitcoin holders have enjoyed a positive start to 2024, but data from blockchain analytics firm Glassnode <a href="https://insights.glassnode.com/the-week-onchain-week-07-2024/" target="_blank" rel="noopener nofollow">suggests</a> that the market may enter a transitional phase. Long-term BTC holders have spent more than 300,000 BTC since November 2023. 
Since 2021, Bitcoin has registered a daily close above $50,200 for only 141 days, accounting for 2.84% of its trading history. The current price puts a majority of investors in a favorable position, where they may start taking profits. In fact, only 13% of the total supply is in a state of loss above $48,000. This data set coincides with BTC’s recent unspent transaction output (UTXO) ratio data. 
UTXO refers to a transaction output that can be used as input in a new transaction. The UTXO ratio is defined as the number of transactions in profit or loss by comparing the price when a particular UTXO was created or destroyed. 
When the UTXO ratio is high, it means the coins haven’t moved since they were created during that transaction. After BTC reached $50,000, the UTXO ratio reached 96.62%, which signaled that investors were beginning to see more profit. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/6f6ef9d1-42ab-4899-a0e9-ee5657f33091.jpg" alt="" title="">
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 Bitcoin unspent realized price distribution chart. Source: Glassnode
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On the other hand, short-term holders (STHs) have undergone a reset. During the spot exchange-traded fund (ETF) rally, the STH supply in profit peaked at 100%, but BTC’s correction to $38,000 reduced its average to 57.5%. 
<h2 id="bitcoin-etf-inflows-soar">Bitcoin ETF inflows soar</h2>
Meanwhile, spot Bitcoin ETFs <a href="https://twitter.com/EricBalchunas/status/1757388239378247765?s=20" target="_blank" rel="noopener nofollow">witnessed</a> high net inflows last week. According to Bloomberg senior ETF analyst Eric Balchunas, the net cumulative flows for 10 ETFs reached over $3 billion. Additional data from a CoinShares report also <a href="https://blog.coinshares.com/volume-169-digital-asset-fund-flows-weekly-report-d8911da6dbe0" target="_blank" rel="noopener nofollow">highlighted</a> that the total crypto assets under management reached $59 billion, the highest since 2022. 
The strong Bitcoin ETF inflow has pushed the <a href="https://cryptoquant.com/insights/quicktake/65c9fd9a03a6647b117d87d6-Strong-Bitcoin-ETF-Inflow-Leads-to-a-Coinbase-Premium" target="_blank" rel="noopener nofollow">Coinbase premium</a> index into a premium, indicating rising buying pressure on the exchange. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-02/f56ccad5-3994-426e-9d06-ff2f6b746825.jpg" alt="" title="">
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 Bitcoin: Coinbase premium index. Source: CryptoQuant
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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.

Bitcoin drops under $50K as on-chain data and BTC market structure hint at profit-taking

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Cointelegraph

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