Bitcoin surged over $50,000 on February 12, marking its first crossing of this threshold since December 2021, following a 15% rise in February.
Despite this milestone, BTC is encountering resistance above $50,000, with a more than 2% retracement on February 13, influenced by the release of the US Consumer Price Index report indicating 3.1% annual inflation, exceeding consensus estimates.
Data from Glassnode suggests a potential transition in the Bitcoin market, as long-term holders have spent over 300,000 Bitcoin since November 2023. Additionally, the UTXO ratio indicates increasing profit realization among investors, while short-term holders experienced a reset following fluctuations in BTC prices.
After rising 15% in February, Bitcoin crossed $50,000 on February 12 for the first time since December 2021.
(Photo : by Dan Kitwood/Getty Images))LONDON, ENGLAND - JANUARY 09: In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is seen on January 09, 2024 in London, England.
But as the daily chart illustrates, BTC is presently encountering overhead resistance over $50,000. The price also retraced more than 2% on February 13 following the release of the US Consumer Price Index report, which showed 3.1% annual inflation-above the consensus estimate.
Although the price of bitcoin has increased significantly in 2024, data from blockchain analytics company Glassnode indicates that the market may be about to undergo a transitional period. Since November 2023, holders of Bitcoin for a long time have spent more than 300,000 Bitcoin.
There have only been 141 days since 2021 when Bitcoin has closed above $50,200 on a daily basis, or 2.84% of its trading history. Most investors are in a good position at the current price, and they may begin to take profits. Actually, just 13% of the entire supply is missing more than $48,000. The most recent data on BTC's unspent transaction output (UTXO) ratio matches this data set.
A transaction output that may be utilized as an input in a different transaction is known as UTXO. The number of transactions that resulted in a profit or loss when comparing the price at which a certain UTXO was produced or destroyed is known as the UTXO ratio.
A high UTXO ratio indicates that no coins have changed since that transaction's creation. The UTXO ratio hit 96.62% when BTC hit $50,000, indicating that investors were starting to realize greater profits.
Conversely, there has been a reset for short-term holders (STHs). The supply of STH in profit peaked at 100% during the spot exchange-traded fund (ETF) surge, but its average was only 57.5% due to BTC's drop to $38,000.
In the meanwhile, last week saw significant net inflows into spot Bitcoin ETFs. Eric Balchunas, a senior ETF analyst at Bloomberg, reports that the net cumulative flows for ten ETFs exceeded $3 billion. Further information from a CoinShares study revealed that the total amount of cryptocurrency assets under control has increased to $59 billion, the highest level since 2022.
Rising purchasing pressure on the exchange is shown by the Coinbase premium index moving into a premium due to the robust influx of Bitcoin ETFs.
