Credit: Original article published by Crypto Briefing Blog.

Long-term Bitcoin holders are looking to book profits as BTC climbs up to $13,000, while an increase in buy pressure on exchanges and OTC markets is acting as support. 

Long-Term Bitcoin Holders Book Profit 

The on-chain activity of two-year-old passive BTC addresses is spiking, implying that long-term hodlers are readjusting their portfolios. 

The report from Santiment which highlighted the action among BTC hodlers noted

“Long-term investors tend to execute trades based on extensive analysis or intimate market knowledge, which is why sudden changes in HODLer behavior often coincide with major shifts in market conditions and upcoming price volatility.”

Bitcoin dormant addresses
Bitcoin dormant addresses movement. Source: Santiment

Investors transferred more than 107,000 Bitcoin to exchanges after the BTC price surge on Oct. 21. The inflow of Bitcoin to exchanges is a signal of an imminent sell-off. Currently, these levels are at par with early September and October levels, suggesting negative moves. 

However, the trade intensity has risen to 5.8, which is a signal of increased buying activity. 

This figure reveals that each Bitcoin has moved hands on average 5.8 times on exchanges, according to Philip Gradwell, the chief economist at Chainalysis. He tweeted

“So people are taking advantage of high prices to realize gains, but they are currently being outweighed by buyers.”

Bitcoin exchange flows
Bitcoin exchange inflows, trade intensity, and BTC price. Source: Twitter 

Moreover, based on stablecoin inflows to exchanges the buying pressure is mounting. This is because the stablecoins on exchanges will be used to trade crypto. 

Before the price surge on Oct. 21, there was a significant rise in this inflow. 

Currently, more than 40,000 stablecoin transactions are made to exchanges daily. Furthermore, the net flow of stablecoins to exchange was positive yesterday, with $20 million more inflows than outflows. 

Stablecoin inflow to exchanges. Source: CryptoQuant 

Bitcoin is headed to the second-highest monthly closing after the all-time high closing of $13,880 in December 2017. Hence, the resistance from the $14,000 level will be significant before another leg up. 

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

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