Bitcoin is becoming livelier at current six-week highs, data shows, as profit-taking returns to the spotlight.
Sleep up to a decade and wake up this week as BTC price action hits six-week highs.
Data from on-chain analytics firm Glassnode shows that some of the oldest “dormant” bitcoins are coming back into circulation.
BTC trends out of hibernation
As BTC/USD returns in the second half of October, hodlers are changing their behavior after a year-long bear market.
According to Glassnode, the amount of Bitcoin that was previously stationary in your wallet for 7-10 years, but not active, hit a monthly high again on Oct. 29.
This is actually the latest in a series of such highs, with the previous one seen on October 1.
Amount of BTC supply in the last active 7-10 year chart. Source: Glassnode/Twitter
Other figures show that unspent transaction costs (UTXO) in earnings hit a monthly high of over 73% on Oct. 28, aiming to dwarf September levels.
Glassnode shows that Bitcoin is moving fast with gains, rather than losses.
Unused transaction costs (UTXO) of Bitcoin on the earnings chart. Source: Glassnode/Twitter
SOPR Peaks Through Key Range
The data reinforces the theory that there is a growing desire to profit, even among the most experienced Bitcoin users, at current prices.
Related: Surrender or Take Profit? Bitcoin Whale Moves 32K Idle BTC Since 2018
Such profit-taking activities could rise significantly even if the spot price posts only modest growth, a key network metric says.
The latest Bitcoin Spent Profit Output Ratio (SOPR) readings show that further price increases put BTC/USD in classic profit-taking land.
SOPR essentially shows the extent to which the BTC supply is being sold at a profit or loss. Fluctuating around 1, the ratio tends to be negative during bear markets, and when it crosses 1 while higher, it indicates an increase in supply, which in turn can affect price performance.
“In a bear market, everyone either sells or waits for break-even to sell,” creator Renato Shirakashi explained in an introduction to the metric in 2019:
“When the SOPR is close to/above 1, people start selling even more because they break even. With more supply, the price falls.”
The Bitcoin Spent Output Profit Ratio (SOPR) history chart is updated once a day. Source: Glassnode
As Cointelegraph reported, some on-chain signals suggest the overall picture is more nuanced.
Binance, the largest-volume exchange, dropped its largest BTC balance this week, indicating that users withdrew more than 55,000 BTC in a single day.
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