BTC , which has been asleep for more than a decade, is now awake as the price action in Bitcoin ( BTC ), sees six-week highs.
Glassnode data shows some old “dormant Bitcoins” returning to circulation.
BTC trends from hibernation
BTC/USD stage a bit of a comeback during the second half October. This is after a year-long bearish market .
Glassnode reports that the number of Bitcoins in their wallets for 7-10 years, but not yet active , reached a one month high on October 29.
This is actually the latest in a string of highs like the one on Oct. 1.
Chart showing the BTC supply amount that was last active 7-10 year ago. Source: Glassnode/ Twitter
Further numbers show that profit from unspent transactions outputs (UTXOs), reached a one month high of more than 73% on October 28, which is a significant increase over September’s levels.
Glassnode indicates that Bitcoin is being moved quickly at a profit rather than a loss.
Bitcoin unspent transaction outputs (UTXOs) in profit chart. Source: Glassnode/ Twitter
Key range sees SOPR rise
These data support the theory that profit-taking is on the rise, even among Bitcoin’s most experienced hodlers at current prices.
Related: Profit-taking or capitulation? Bitcoin whale leaves 32K BTC dormant in 2018
Even if spot prices only show modest growth, such profit-taking activities can increase dramatically.
According to the latest Bitcoin Spent Output Profit Ratio data (SOPR), further price gains would make BTC/USD a classic profit-taking currency.
The SOPR measures the profit or loss that the BTC supply has been sold. The ratio fluctuates around 1 during bear markets. If it crosses 1, it indicates a supply rise which can impact price performance.
“In a bear-market, everyone is either selling or waiting until the break-even point to buy,” Renato Shirakashi stated in an introduction of the metric in 2019.
“When SOPR is less than 1 or close to 1, people sell more until they reach break-even. The price drops when there is more supply.
Cointelegraph reported that some on-chain signals indicate that the overall picture may be more nuanced.
Binance, the biggest exchange by volume, saw its largest-ever BTC balance decline this week. This indicates that users drew more than 55,000 BTC in one day.
These views and opinions are the author’s and do not necessarily reflect those of Cointelegraph.com. You should do your research before making any investment or trading decision.
