{"id":18966,"date":"2023-05-31T15:01:08","date_gmt":"2023-05-31T15:01:08","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-hodlers-exited-capitulation-above-20k-new-metric-hints\/"},"modified":"2023-05-31T15:01:12","modified_gmt":"2023-05-31T15:01:12","slug":"bitcoin-hodlers-exited-capitulation-above-20k-new-metric-hints","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-hodlers-exited-capitulation-above-20k-new-metric-hints\/","title":{"rendered":"Bitcoin hodlers exited ‘capitulation’ above $20K, new metric hints"},"content":{"rendered":"
Bitcoin (BTC) is in a \u201ctransition,” which should pave the way to the next bull market top, new research has concluded.<\/p>\n
In the latest edition of its weekly newsletter, \u201cThe Week On-Chain,\u201d analytics firm Glassnode unveiled its latest tool for tracking Bitcoin\u2019s resurgence.<\/p>\n
After the 2022 bear market and signs of recovery in Q1 this year, on-chain metrics have undergone a broad transformation, many suggesting that a long-term BTC price bottom is already in.<\/p>\n
With price action stagnating since mid-March, however, doubts have returned \u2014 along with downside targets which stretch toward $20,000.<\/p>\n
For Glassnode analysts, however, Bitcoin\u2019s long-term investor base is already preparing for better times ahead.<\/p>\n
Using existing on-chain tools, analysts unveiled a new way of tracking sentiment among these long-term holders (LTHs) \u2014 those hodling BTC for at least 155 days.<\/p>\n
The tool, \u201cLong Term Holder Spending & Profitability,\u201d splits LTH behavior patterns into four phases.<\/p>\n
After a period of \u201ccapitulation\u201d at the end of 2022, LTHs have begun a \u201ctransition\u201d toward a state of \u201cequilibrium\u201d before full \u201ceuphoria\u201d \u2014 the next BTC price cycle top \u2014 hits.<\/p>\n
Capitulation is defined as a situation in which \u201cSpot price is lower than the LTH cost basis,\u201d Glassnode explains, with significant LTH spending thus \u201clikely due to financial pressure and capitulation.\u201d<\/p>\n
Transition, meanwhile, is when the \u201cMarket is trading slightly above the long-term holders cost basis, and occasional light spending is part of day-to-day trade.\u201d<\/p>\n
The LTH cost basis, as of May 30, lies at around $20,800, separate data shows.<\/p>\n
\u201cOur current market has recently reached the Transition phase, flagging a local uptick in LTH spending this week,\u201d \u201cThe Week On-Chain\u201d commented. <\/p>\n
\u201cDepending on what direction volatility erupts next, we can employ this tool to locate local periods of overheated conditions, as observed from the lens of Long-Term Holders.\u201d<\/p><\/blockquote>\n