Bitcoin Just $3K Away from Trillion Dollar Market Cap
In its week on-chain report this week, analytics provider Glassnode has delved into the spending habits of holders and investors.
It stated that the week has seen some minor profit realization on-chain by long-term holders, “although so far it does not appear to be of significant coin volume to put the brakes on.”
The report added that the key level to break is $53K for Bitcoin to return to the “12-zero’s club” – meaning a trillion-dollar market capitalization.
#Bitcoin rallied towards the $50k level last week, absorbing the profits realised by spenders on-chain
This week, we assess who is spending coins, flows of coins to exchanges, and rising open interest in derivatives markets
Read More in The Week On-chainhttps://t.co/BZ9q1WyXhS
— glassnode (@glassnode) August 23, 2021
Bitcoin on Exchanges Plateaus
One metric that has been visible over the past week or so is that the massive outflow of crypto assets from exchanges has abated as levels begin to plateau. Glassnode noted:
“This week saw a very slight uptick in BTC held on exchanges which follows a month long plateau in coin balances.”
Throughout August, exchange balances have stalled at around 2.5 million BTC or around 13% of the circulating supply. Ethereum balances hit an all-time low of around 15 million ETH last week.
The report added that the Exchange Net Flow metric showed moderate inflows to exchanges as some traders and investors appeared to be taking profits, and capitalizing on market strength. The magnitude of the flows was similar to those seen through the December 2020 to April 2021 bull market period, and reasonably expected behavior.
There has been a sharp uptick in older coins between 6 months and 5 years being spent which “largely captures experienced Bitcoin investors and traders who have weathered non-trivial volatility in this cycle already.”
Bitcoin spent outputs – Glassnode
The profit-taking by holders of older coins is a natural part of the bull market and has been observed on previous cycles. It does not mean that a major correction is coming, however, BTC has retraced a little over the past 24 hours.
BTC Price Outlook
At the time of press, Bitcoin was changing hands for $49,870 according to Tradingview. It has retreated around 1.4% on the day after reaching a 15 week high of $50,620 on Monday.
Momentum is still bullish and a golden cross is approaching on the daily timeframe, estimated for early September should upward momentum continue. There is resistance at around $54K and support currently lies at the 200-day moving average which is at a little over $46K.