SwanBitcoin445X250

Bitcoin broke above the psychological $60k level less than a week back. Since then, it has already spent a considerable amount of time hovering below the $63k threshold. Even at the time of writing, BTC was seen exchanging hands at $62.4k.

The near-ATH period is considered to be quite tricky for a couple of reasons. First, the coin is usually tested and rejected multiple times at past resistance levels. Secondly, at this stage, most of the HODLers are usually in profit and in retrospect, the incentive to sell intensifies.

As far as the former factor is concerned, Bitcoin has already been rejected at $62.9k a couple of times in the recent past. The latter factor too seems to be gradually playing out now.

The cashing-out phase

At this point, close to 98.34% of coins are held at an unrealised gain. So, to analyze whether or not HODLers in profit have started cashing out, let’s take a peek into the state of the URPD metric. Simply put, the UTXO Realised Price Distribution gauges the distribution of prices at which the circulating supply was last spent.

As per the chart attached below, around 311.8k BTC were last moved at higher prices [above $60.1k]. Notably, the owners of the aforementioned coins held through the turbulent phase over the last few months and exited as soon as they fetched the bare minimum.

Source: Glassnode[1]

Additionally, over the last 7 days, the LTH net position change metric has started projecting a downward slope on its chart[2], confirming that long-term HODLer spending has been going on lately.

Usually, long-term HODLer spending coincides with the price breaking above previous highs. Thus, in the coming days as BTC’s price surpasses the $64k benchmark and trades higher, one can expect the selling behavior to prolong.

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