Bitcoin (BTC) breached $50,000 on Feb. 12 for the first time since December 2021 after rallying 15% in February. <\/p>\n
However, as shown on the daily chart, BTC currently faces overhead resistance at $50,000, and the price retraced by over 2% on Feb. 13 after the United States Consumer Price Index report indicated 3.1% annual inflation, which was higher than the consensus expectation. <\/p>\n
Bitcoin holders have enjoyed a positive start to 2024, but data from blockchain analytics firm Glassnode suggests that the market may enter a transitional phase. Long-term BTC holders have spent more than 300,000 BTC since November 2023. <\/p>\n
Since 2021, Bitcoin has registered a daily close above $50,200 for only 141 days, accounting for 2.84% of its trading history. The current price puts a majority of investors in a favorable position, where they may start taking profits. In fact, only 13% of the total supply is in a state of loss above $48,000. This data set coincides with BTCs recent unspent transaction output (UTXO) ratio data. <\/p>\n
UTXO refers to a transaction output that can be used as input in a new transaction. The UTXO ratio is defined as the number of transactions in profit or loss by comparing the price when a particular UTXO was created or destroyed. <\/p>\n
When the UTXO ratio is high, it means the coins havent moved since they were created during that transaction. After BTC reached $50,000, the UTXO ratio reached 96.62%, which signaled that investors were beginning to see more profit. <\/p>\n
On the other hand, short-term holders (STHs) have undergone a reset. During the spot exchange-traded fund (ETF) rally, the STH supply in profit peaked at 100%, but BTCs correction to $38,000 reduced its average to 57.5%. <\/p>\n
Meanwhile, spot Bitcoin ETFs witnessed high net inflows last week. According to Bloomberg senior ETF analyst Eric Balchunas, the net cumulative flows for 10 ETFs reached over $3 billion. Additional data from a CoinShares report also highlighted that the total crypto assets under management reached $59 billion, the highest since 2022. <\/p>\n
The strong Bitcoin ETF inflow has pushed the Coinbase premium index into a premium, indicating rising buying pressure on the exchange. <\/p>\n
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. <\/p>\n
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Bitcoin drops under $50K as on-chain data and BTC market structure hint at profit-taking - Cointelegraph<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) breached $50,000 on Feb. 12 for the first time since December 2021 after rallying 15% in February. However, as shown on the daily chart, BTC currently faces overhead resistance at $50,000, and the price retraced by over 2% on Feb Continue reading