Bitcoin’s (BTC) 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.
BTC/USD daily chart. Source: TradingView
Easing distribution and slowing sell-side pressure back Bitcoin price
Data from Cointelegraph Markets Pro and TradingView 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 low of $56,500 on May 1, the lowest since March 5.
Recent reporting 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.”
Bitcoin: Supply Last Active 1yr+ Age Bands. Source: Glassnode
Meanwhile, the Long-Term Holder (LTH) Binary Spending Indicator has been declining over the last few weeks, suggesting decreased distribution pressure.
“As of the last few weeks, however, this distribution pressure has eased off markedly, giving the bulls more breathing room and less resistance overall.”Bitcoin LTH spending binary indicator. Source: Glassnode
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.”
Macro resets
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, key on-chain metrics have rebalanced, suggesting a massive upside movement for BTC.
The firm’s on-chain data reveals that while new…
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