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Bitcoin

when

Bitcoin’s (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price strived to hold above $70,000 on May 22 as Glassnode analysts suggested that the pioneer cryptocurrency is preparing for a “bigger move” to the upside.&nbsp;&nbsp;
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/e10adae3-914d-4daf-bdbc-bfbdd8601fd1.png">
 <figcaption style="text-align: center;">
 BTC/USD daily chart. Source: <a href="https://www.tradingview.com/x/1xsUzqZ5/" target="_blank" rel="noopener nofollow">TradingView</a>
 </figcaption>
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<h2 id="easing-distribution-and-slowing-sell-side-pressure-back-bitcoin-price">Easing distribution and slowing sell-side pressure back Bitcoin price</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*rqss2h*_ga*MTAxMzE3MDgyMS4xNzA2Nzk5MzMw*_ga_53R24TEEB1*MTcxNjM4OTMyOS40MzcuMS4xNzE2MzkwMzY3LjAuMC4w">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> show that Bitcoin’s price has been steadily ascending after an extended downtrend from all-time highs. During this drawdown, BTC markets experienced periods of intense distributive pressure, which pulled its price to a <a href="https://cointelegraph.com/news/bitcoin-price-loses-60k-support-2-month-lows">low of $56,500</a> on May 1, the lowest since March 5. 
Recent <a href="https://insights.glassnode.com/the-week-onchain-week-21-2024/?utm_campaign=woc_21_2024&amp;utm_medium=email&amp;utm_source=woc_newsletter" target="_blank" rel="noopener nofollow">reporting</a> from Glassnode notes that Bitcoin’s recent recovery to $71,000 is due to slowing sell-side pressure and “compression of volatility,” even as most key on-chain metrics tend toward an equilibrium.
Using the Supply Last Active Age Band metric, Glassnode analysts noted that the one-year and two-year cohorts experienced a “large decline” over the last two months. The 3y+ cohort continues to increase, suggesting this group is “generally waiting for higher prices before parting ways with their coins.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/0b386a26-83ee-416d-8df0-1d028a1c47c4.png">
 <figcaption style="text-align: center;">
 Bitcoin: Supply Last Active 1yr+ Age Bands. Source: Glassnode
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Meanwhile, the Long-Term Holder (LTH) Binary Spending Indicator has been declining over the last few weeks, suggesting decreased distribution pressure. 
<blockquote>
 “As of the last few weeks, however, this distribution pressure has eased off markedly, giving the bulls more breathing room and less resistance overall.”
</blockquote>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-05/3f1911f3-a876-4af3-b2f6-9a25733ce6af.png">
 <figcaption style="text-align: center;">
 Bitcoin LTH spending binary indicator. Source: Glassnode
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Glassnode analysts also observed that a local divergence was starting to develop between LTH and STH Supply, adding “weight to the case that there is a cooling off of distribution pressure across mature investors.”
<h2 id="macro-resets">Macro resets</h2>
Bitcoin’s price recovery from the $56,500 low appears to have reset the price valuations and investor expectations on a longer-term market outlook based on various criteria. According to the Glassnode report, <a href="https://cointelegraph.com/news/key-on-chain-metric-shows-bitcoin-miners-in-massive-btc-accumulation-mode">key on-chain metrics</a> have rebalanced, suggesting a massive upside movement for BTC. 
The firm’s on-chain data reveals that while new capital flowing into the <a href="https://cointelegraph.com/learn/how-does-blockchain-work-a-beginners-guide-to-blockchain-technology">Bitcoin network</a> has slowed down considerably from its all-time highs, its realized cap is still positive enough to stimulate price action. 
<blockquote>
 “This metric remains in positive profit-dominated territory and is returning towards an equilibrium position. However, with declining sell-side headwinds from mature investors, this wave of modest demand has been enough to stimulate price action.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/962f60ab-67cf-49b3-af31-67dba9b3b391.png">
 <figcaption style="text-align: center;">
 Bitcoin net realized profit and loss. Source: Glassnode
 </figcaption>
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Using the Sell-Side Risk metric to monitor volatility, Glassnode analysts evaluated the <a href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter#:~:text=It%20is%20the%20total%20value,in%20the%20previous%20two%20years.">total value locked</a> in by coins spent on-chain (Realized Profit + Realized Loss) in relation to the size of the asset class (Realized Cap). They found that the Sell-Side Risk Ratio has declined significantly over recent weeks, suggesting that the market has found a degree of equilibrium over the course of this correction.
Glassnode concludes that while an intense period of mature investor distribution followed Bitcoin’s run toward the <a href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat#:~:text=Data%20from%20Cointelegraph%20Markets%20Pro,dip%20before%20abruptly%20heading%20higher.">$73,835 all-time high</a>, sell-side pressure has markedly declined. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-05/4de067ec-3418-4033-b081-1c9a33923552.png">
 <figcaption style="text-align: center;">
 Bitcoin sell-side risk ratio. Source: Glassnode
 </figcaption>
</figure>
The report noted that “this has led to a reduction in headwinds and overhead resistance, with even modest demand able to stimulate positive price action.”
<h2 id="bitcoin-price-has-strong-underlying-support">Bitcoin price has strong underlying support</h2>
Bitcoin’s May 1 flash crash to $56,500 was followed by a sharp recovery above $60,000, a level it has held above since then. Popular trader and analyst, Daan Crypto Trades <a href="https://x.com/DaanCrypto/status/1793009367144677839" target="_blank" rel="noopener nofollow">said</a>,
<blockquote>
 “Bitcoin’s monthly chart is pretty clean. It is getting close to engulfing last month’s candle. It also held the key area around the ~$60K region, which marked the highest monthly candle closes at the last 2021 cycle top(s).”
</blockquote>
Data from on-chain data provider IntoTheBlock reinforced the importance of this level. Its In/Out of the Money Around Price (IOMAP) model showed that two significant support lines sat above the $60,000 mark. They lay between the $61,553 and $67,860 price range, where approximately 1.5 million BTC were previously bought by 3.66 million addresses.
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 <img src="https://s3.cointelegraph.com/uploads/2024-05/4432d074-a173-4ec9-aeca-88478640ae1e.png">
 <figcaption style="text-align: center;">
 Bitcoin IOMAP chart. Source: IntoTheBlock
 </figcaption>
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This demand area is robust enough to produce the buying pressure required to push the price higher.
Another analyst Ali Martinez shared the following chart in the X social platform showing MVRV Pricing Bands and said,
<blockquote>
 “If<a href="https://x.com/hashtag/Bitcoin?src=hashtag_click" target="_blank" rel="noopener nofollow"> #Bitcoin</a> continues to trade above $65,125, the next local<a href="https://x.com/search?q=%24BTC&amp;src=cashtag_click" target="_blank" rel="noopener nofollow"> $BTC</a> top before a brief correction could be around $77,593!”
</blockquote>
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-05/076885a0-f80f-4d7d-850d-10c591c6a7cf.png">
 <figcaption style="text-align: center;">
 Bitcoin MVRV extreme deviation pricing bands. Source Glassnode
 </figcaption>
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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 price preps for ‘bigger move’ as on-chain metrics ‘reset’

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