This week, Bitcoin ($BTC
) shows increased volatility, setting several price records per day, followed by short-term pullbacks.
Given that the 50-day moving average remains above the 200-day moving average, it is highly likely that the long-term uptrend will continue in the future.
The Glassnode chart (see below) showed that the change in the net position of the hodlers revealed a significant shift in the behavior of long-term holders. After several months of accumulation (indicated by the green line), there was a sharp transition to distribution (red stripes).
On November 20, the hodler chart reflected the most negative trend since June, as more than 37,000 #BTC☀ worth more than $3.4 billion were sold. Thus, at the moment when bitcoin reached historical highs, long-term investors decided to lock in profits.
This behavior is typical for prolonged rallies, when the temptation of large profits tempts even the most persistent bitcoin holders.
CryptoQuant's chart of bitcoin exchange net flows further highlighted the ongoing sell-off. The growth of stock inflows suggests that holders are transferring their BTC to exchanges, probably for liquidation.
If the inflow on the exchange continues to outpace the outflow, this could create sustained selling pressure, which will make it difficult for bitcoin to restore its historical maximum in the near future.
However, the current decrease in inflows may indicate that most of the sales have already occurred.
Now technical and on-chain indicators indicate that the trend remains bullish, which does not exclude short-term corrections and consolidation.