A recently published report by Glassnode, one of the most prestigious analysis companies in the cryptocurrency world, revealed that Bitcoin reaching an all-time high in March led to an increase in profit taking by long-term wallets. However, according to analysts, this activity has started to decrease in recent weeks.
“Typically, profit taking by long-term wallets tends to increase at all-time highs, but this has been tapering off in recent weeks,” the Glassnode Insights report published today said.
The report also analyzed the asset balance between long-term Bitcoin wallets and new demand. It has been suggested that the current market is in the early stages of a euphoria or price discovery phase. However, it has been noted that previous euphoria phases experienced numerous price declines exceeding 10%, many were much deeper, and price corrections of over 25% were common.
Interestingly, since March, when Bitcoin reached its all-time high, there have only been two price corrections of more than 10%.
At the time of writing this article, BTC price is trading at $69000, with a 4% decrease in the last 24 hours.
In their previous predictions, Glassnode analysts had determined the $ 58,000 level as a potential support point and suggested that BTC could continue its rise after this point.
*This is not investment advice.