Bitcoin (BTC) is in a “transition,” which should pave the way to the next bull market top, new research has concluded.
In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode unveiled its latest tool for tracking Bitcoin’s resurgence.
Bitcoin hodlers in “transition”
After the 2022 bear market and signs of recovery in Q1 this year, on-chain metrics have undergone a broad transformation, many suggesting that a long-term BTC price bottom is already in.
With price action stagnating since mid-March, however, doubts have returned — along with downside targets which stretch toward $20,000.
For Glassnode analysts, however, Bitcoin’s long-term investor base is already preparing for better times ahead.
Using existing on-chain tools, analysts unveiled a new way of tracking sentiment among these long-term holders (LTHs) — those hodling BTC for at least 155 days.
The tool, “Long Term Holder Spending & Profitability,” splits LTH behavior patterns into four phases.
After a period of “capitulation” at the end of 2022, LTHs have begun a “transition” toward a state of “equilibrium” before full “euphoria” — the next BTC price cycle top — hits.
Capitulation is defined as a situation in which “Spot price is lower than the LTH cost basis,” Glassnode explains, with significant LTH spending thus…
