Analysts: short-term investors are currently busy selling BTC

Glassnode concluded that only short-term holders of the main cryptocoin are selling BTC at the moment. The company’s new research is based on metrics from HODL waves that indicate how bitcoin investors of all ages are handling the digital currency.

Experts believe that, despite the correction taking place in the crypto market, long-term owners of bitcoins prefer to keep the digital asset.

“We are seeing a balance of bitcoin going into and out of exchanges,” the analysts said.

They also pointed out that short-term investors buy bitcoin, but prefer to sell it immediately, as soon as the price of BTC declines.

“People buy a dip and then it turns out it wasn’t the last dip, so they sell again and then buy again. They create the fluctuating dynamics that you can see on stock charts. For each bitcoin withdrawn from the exchange, the same number of bitcoins comes in a week,” the experts noted.

Glassnode analysts are confident that the transition of BTC into the hands of long-term traders is a constructive sign. But in the event of a change in trend, long-term owners of the cryptocoin will begin to get rid of their bitcoins, which will be evidence of an intensifying bearish scenario.

“A more bearish scenario where we see the HODL wave metric starts to rise again. This suggests that coins stored in wallets are starting to sell. This means that some of the long-term holders are losing confidence,” the researchers concluded.

Earlier, the analyst TradingView Trade_lab announced his forecast about the most favorable time to purchase the first crypto coin. He believes that it is worth waiting for new BTC lows to buy it, which can reach $28,800–30,500. This, according to the crypto-enthusiast, is the zone from which the rate growth began more than once in 2021.

What do you think, will TradingView Trade_lab’s forecast come true, given that the price of bitcoin is now around $37,000?