Glassnode reported that exchange flows linked to profit-taking by short-term investors, which it said had been weighing on Bitcoin’s price, fell back to their annual average after reaching a one-year high two weeks ago.
In its latest assessment, the on-chain analytics firm highlighted short-term Bitcoin holders in profit. This group’s share of Bitcoin inflows to exchanges reached its highest level in the past year two weeks ago.
According to Glassnode, these investors’ profit-taking has pressured the price since then. The latest data shows that the related flows have slowed and returned to their annual average.
What has changed in Bitcoin’s selling pressure?
The development matters because selling activity from a source that has recently weighed on the price has eased. Flows from this group of investors sending Bitcoin to exchanges to take profits have receded from the exceptional levels seen two weeks ago.
This time, the group being tracked consists of short-term investors in profit. A previous analysis of easing selling pressure in Bitcoin that we covered looked at the movement of 6–12-month coins to exchanges.
It follows a rally above $85,000
In its October 7 report, which Glassnode referenced in this post, the firm said that Bitcoin had risen above $85,000 on low trading volume and limited inflows of new money, before falling again.
The latest update points to some easing on the selling side of this process: Flows tied to short-term profit-taking, which was said to be weighing on the price, are now at their annual average.
Not investment advice.