{"id":263457,"date":"2021-06-01T01:15:00","date_gmt":"2021-05-31T22:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-rejects-near-37-5k-on-chain-data-shows-capitulation-from-short-term-holders\/"},"modified":"2021-06-01T01:15:00","modified_gmt":"2021-05-31T22:15:00","slug":"bitcoin-rejects-near-37-5k-on-chain-data-shows-capitulation-from-short-term-holders","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-rejects-near-37-5k-on-chain-data-shows-capitulation-from-short-term-holders\/","title":{"rendered":"# Bitcoin rejects near $37.5K, on-chain data shows capitulation from short-term holders"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3578836a351\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3578836a351\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-rejects-near-37-5k-on-chain-data-shows-capitulation-from-short-term-holders\/#Short-term_holders_are_feeding_the_sell-off\" >Short-term holders are feeding the sell-off<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin rejects near $37.5K, on-chain data shows capitulation from short-term holders <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin started the week off with an abrupt bullish breakout to $37,500, a level some analysts have identified as a crucial &#8216;line in the sand&#8217;, but the rally was short-lived as BTC met selling near the lower arm of the bearish pennant\u00a0that can be seen on multiple timeframes.\u00a0<\/p>\n<p>While many traders are concerned that the 2021 bull market is now over and considering whether gains should be locked in, on-chain data shows that long-term Bitcoin (BTC) holders have been accumulating in preparation for a potential 2013-style double-pump that has the potential to elevate BTC to a fresh all-time high. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/bbce382b-36f9-486c-a997-b276b6b43095.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 1-day chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>Ether (ETH), on the other hand, rallied 8% to $2,677 as chatter about a possible \u2018flippening\u2019 between Bitcoin and Ethereum continues to be a topic of discussion. Most recently, Bloomberg speculated that Ether could one-day surpass Bitcoin as the world\u2019s cryptocurrency of choice.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Short-term_holders_are_feeding_the_sell-off\"><\/span>Short-term holders are feeding the sell-off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Further insights into what is feeding the uncertainty in the markets can be found in the most recent \u201cWeek on-chain\u201d report from Glassnode which looked at the activity of short-term holders (STH), who are newer market entrants that hold coins younger than 155 days, and long-term holders (LTH) who hold coins older than 155 days. <\/p>\n<p>According to the Average Spent Output Lifespan (ASOL)\u00a0metric, which provides insight into the average age of all UTXOs spent that day, LTHs primarily held through the recent dip as evidenced by the ASOL falling dramatically \u201cback to levels below the accumulation range seen between $50,000 and $60,000.&#8221;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/af6ef603-77f0-405c-876d-8316b33fbfca.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin average spent output lifespan. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-22-2021\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>Further proof that it has been STHs that are behind the sell-off can be found by comparing the amount of on-chain Bitcoin transfer volume that is in profit (LTHs) to the at a loss (STHs). <\/p>\n<p>According to data from Glassnode, LTHs were seen taking profits early in the 2021 rally from $10,000 to $42,000 before their spending \u201creached a fairly stable baseline,\u201d with last week\u2019s sell-off \u201chaving little effect on their spending patterns\u201d indicating \u201cthat LTHs are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly unwilling to liquidate coins at reduced prices.\u201d<\/p>\n<p>This compares to the behavior of STHs who \u201cincreased their spending by over 5x during this sell-off with the maximum spending occurring near the current local low of the market.\u201d<\/p>\n<p>Evidence of this can also be found in a review of the Spent Output Profit Ratio (SOPR) for STHs, who continue to realize losses by spending coins that were accumulated at higher prices at the current lower prices, indicating capitulation. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/2872e6cd-feae-45b5-80fc-227d45b68c3c.png\"><figcaption style=\"text-align: center;\"><em>Short-term Bitcoin holder SOPR. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-22-2021\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>According to Glassnode: s<\/p>\n<blockquote><p>\u201cWithout doubt, the current market structure is best described as a battleground between the bulls and the bears with a clear trend forming between long-term and short-term investors. This is a battle of HODLer conviction and im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te buying power.\u201d<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-rejects-near-37-5k-on-chain-data-shows-capitulation-from-short-term-holders\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin rejects near $37.5K, on-chain data shows capitulation from short-term holders &#8221; Bitcoin started the week off with an abrupt bullish breakout to $37,500, a level some analysts have identified as a crucial &#8216;line in the sand&#8217;, but the rally was short-lived as BTC met selling near the lower arm of the bearish pennant\u00a0that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":263458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvNWVlNzRjNWYtMmZiOS00YWNmLTkxMTAtN2MwMGZkNWE2ZWJhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,74863,74939,73785],"class_list":["post-263457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-cryptocurrencies","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/263457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=263457"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/263457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/263458"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=263457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=263457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=263457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}