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.
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.
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.
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