On-chain data shows that Bitcoin (BTC) transactions are gradually transferring assets from experienced, longer-term players to new entrants. This shows a changing market cycle. Glassnode confirmed that this is a common tendency amid cycle turning points.
HODL Waves shows the amount of circulating bitcoin supply, categorized into different age groups. This shows how different cohorts interact with their supply.
Glassnode’s chart shows that the 1-day to 3-month band saw a notable bounce, rising 86% from 11.5% to the current level of 21.4%.
The 1d-3m #Bitcoin Realized Cap HODL Waves has risen from the cycle low of 11.5% to a current level of 21.4%, an increase of 86%.
This suggests that there is a transfer of wealth from experienced owners to newer demand, a phenomenon common at all cycle turning points. pic.twitter.com/M6ibcjvynb
— glassnode (@glassnode) June 1, 2023
Meanwhile, analysts are anticipating downtrends on the year-long HODL wave. Such developments will trigger a surge in major cryptocurrencies. New participants mean new demand in the market. Additionally, investors who bought at lower prices are beginning to sell their assets at higher costs.
In addition, Bitcoin has overcome several key long-term signals. As of this writing, the asset is trading above the 200-week ma ($25,818). This moving average represents a historical support level that BTC broke during the December cycle bottom.
Also, Bitcoin is fluctuating above its realized price of $19,914. This indicates the value of the tokens in circulation at the price of their last movement. In addition, it roughly corresponds to the price that all participants paid for the cryptocurrency.
Upcoming bull market?
Meanwhile, bitcoin price continues to consolidate. The leading cryptocurrency saw a minor gain over the past day as the market remained flat. At press time, the transaction price was $27,100.21, up more than 1% from the previous day.
Bulls should clear the $28,000 resistance to trigger solid uptrends. The current support is around $26.5,000. Meanwhile, the cryptocurrency community believes that a bull market may be underway.
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