- There seemed to be a reluctance among BTC traders to cash out their profits.
- Early HODLers distributed to newer market participants.
It's been a roller coaster ride for Bitcoin [BTC] after its last halving.
The initial reaction was positive: according to CoinMarketCap, the King Coin rose to the $67,000 mark three days after the crucial event. However, the gains were erased as BTC fell 4% to pre-halving levels in the last 24 hours.
Therefore, it is crucial to understand where the world's largest digital asset stands post-halving and gain insights into its next steps in the short to medium term.
Profit taking remains low
According to on-chain analytics firm Santiment, there appeared to be a reluctance among BTC traders to cash out their profits. The Network Realized Profit/Loss (NRPL) indicator remained low and the pattern was consistent with previous peaks in 2017 and 2021.
At the same time, the number of BTC holders also increased.
Santiment called this phase an “irrational divergence,” in which the market refused to sell despite rising prices.
Although this phase relies on BTC’s long-term growth potential, it has historically preceded “significant market tops,” so it sounds more like a bearish signal.
Source: Santiment
HODLers redistributed
In contrast, the Mean Dollar Invested Age (MDIA) metric has declined sharply in recent months, indicating an active redistribution period.
Redistribution involves a transfer of wealth from early HODLers to newer market participants. After a 12-month redistribution cycle, the market has historically returned to an accumulation phase, supporting the belief that the bull market will continue.
Source: Santiment
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The above-mentioned deductions were reflected in the distribution of offers among the key cohorts. In particular, small holders or those who own up to 1 whole Bitcoin bought after the halving.
On the contrary, sharks and whales, which had reserves of between 100 and 100,000 coins, distributed their coins.
Source: Santiment
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