- There seemed to be a reluctance among BTC traders to cash out their profits.
- The first HODLers were distributed among the new participants.
It’s been a rollercoaster for bitcoin [BTC] after its most recent halving.
The initial response was positive, with the king coin skyrocketing to touch $67,000 three days after the crucial event, according to CoinMarketCap. However, the gains have been erased as BTC retreated 4% in the last 24 hours to pre-halving levels.
Therefore, it is essential to understand where the world’s largest digital asset stands after halving, as well as information about its next movements in the short and medium term.
Profit collection remains low
According to on-chain analytics firm Santiment, there appeared to be a reluctance among BTC traders to cash out their profits. The Network Realized Profit and Loss (NRPL) indicator remained low and the pattern was aligned with the previous high periods of 2017 and 2021.
The number of BTC holders was also seen increasing in parallel.
Santiment referred to this phase as “irrational divergence,” in which the market refused to sell despite rising prices.
While rooted in BTC’s long-term growth potential, the phase has historically preceded “significant market highs,” so it sounds more like a bearish signal.
HODLers were redistributing
In contrast, the average dollar investment age (MDIA) metric has declined sharply in recent months, indicating an active redistribution phase.
During redistribution, wealth is transferred from early HODLers to new market participants. After a 12-month redistribution cycle, the market has historically returned to an accumulation phase, supporting the belief that the bull market will continue.
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The aforementioned deductions were reflected in the distribution of supply between key cohorts. In particular, small holders, or those who owned up to 1 full Bitcoin, were seen buying after the halving.
In contrast, sharks and whales, which had reserves of between 100 and 100,000 coins, distributed their coins.
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This is an automatic translation of our English version.
