bitcoin (BTC) long-term holders are coming back to life as BTC price rises, latest analysis confirms.
in a cheep On July 13, Philip Swift, creator of on-chain data resource LookIntoBitcoin, revealed classic bull market behavior among “older” BTC investors.
Value Days destroyed Multiple impressions BTC price bullish signal
Bitcoin's current price cycle may be dividing opinions when it comes to how high the price of BTC could risebut one thing is certain: Hodler's behavior is the same.
With BTC/USD more than doubling in 2023, the speed of on-chain spending increased, indicating profit-taking activity.
Loading a Multiple Value of Days Destroyed (VDD) chart, Swift suggested that the current cycle hardly differs from all previous ones in this regard.
“Increasing on-chain spend volume showing where we are in the cycle right now,” part of an attached Twitter comment read.
"History does not repeat itself, but it often rhymes."
VDD is based on the existing Coin Days Destroyed (CDD) Metric, which measures periods of inactivity each time an amount of BTC moves up the chain. It takes CDD data and factors in the current BTC price, and its multiple then compares the 30-day result to the 365-day average.
“It is able to highlight when older coins start to quickly enter the market to be sold,” Swift explains in a how-to guide on LookIntoBitcoin.
"This typically happens when long-term participants are looking to profit as the price accelerates in major bull market cycles."
The VDD Multiple currently measures 1.32, well below its 2023 peak of 1.37 seen in April. For Swift, this is a tell-tale sign of a "first-stage bull market."
reactingCheckmate, a lead on-chain analyst at data firm Glassnode, called the findings "remarkable."
“It is remarkable how consistent the cycles are. Humans react in the same way, to a similar stimulus, ”he replied.
"This time is indeed, no different."
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Glassnode's data, meanwhile, underscores how tempting it might be for various classes of hodler to charge at current prices.
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The market value to realized value (MVRV) ratio of Bitcoin for long and short-term holders (LTH and STH, respectively) shows both types of investors considerably in the black.
LTH coins, defined as coins inactive for at least 155 days, have an added value of 1.52 times more than when they last moved. For the STH equivalent, the number is 1.12.
Previously, Cointelegraph reported on the growing influence of STHs on the price action of BTC.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
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