Examining the data from China shows that Bitcoin is gradually moving from the group of long-term investors to new investors. This trend means that the curre market cycle is likely to be at a turning poi.
According to BINCrypto, analysis company Glassnode notes that we are transferring Bitcoin wealth in the market by examining HODL Waves. The company explained:
This trend means the transfer of wealth from experienced investors to new demand.
Glassnod also stated that this trend is a common phenomenon at turning pois in the market cycle.
Are we moving towards a bull market?
Hodel Waves uses such data to display the amou of Bitcoin in circulation in differe (age) groups of investors, represeed by differe colors. These waves are used to measure what differe groups of investors are doing with their coins.
The developme of Hodel waves in the chart below shows the increase of the one- to three-moh band from the lowest of the cycle. In addition, Glassnode pois to the 86% growth of this band from 11.5% to the curre value of 21.4%.
Philip Swift, Bitcoin analyst, Forecast This means that the one-year Hodel wave will begin to decline and at the same time the price of Bitcoin will begin to rise.
When new players (new demand) come in, investors who bought at the bottom of Bitcoin start selling to them at higher prices.
Additionally, Bitcoin price is now moving above several key long-term indicators. According to data from Woo Charts, Bitcoin price is currely slightly above its 200-week moving average of $25,818. This is a historical support level that was broken during the down cycle in December.
The curre price is also higher than the realized price of $19,914. This index is the average of the last price of all coins in circulation at the time of transfer. It can also be considered an approximation of what the eire market paid on average to buy Bitcoin.
According to last week’s reports, it is expected that we will see more volatility in the price of Bitcoin following a long-term period with low trading volume. However, as the curre trend coinues, this has not yet been achieved.
The price of Bitcoin has increased over the past day, along with other digital currencies in the market. The crypto asset is currely trading at $27,112 at the time of writing after gaining 0.87% over the past 24 hours.
Curre resistance levels are at $26,200 and then at $25,000, a price we haven’t seen since mid-March. On the other hand, Bitcoin must cross the $28,000 resistance level to experience an acceptable upward trend.
