Bitcoin [BTC] has had a dull week. Even as the contender Ethereum, went ahead to establish an all-time high, the world’s largest cryptocurrency failed to break free from the narrow consolidation channel below $60,000.
Undeterred by the price inaction, Bitcoin miners have returned to accumulation mode and its on-chain metrics have almost reset. This was revealed by the latest weekly report by the blockchain intelligence company, Glassnode.
What is justifying Bitcoin’s ‘twelve zeros club’ status?
Glassnode says the formation of strong support has been crucial for the crypto-asset strengthening its foothold in the $1 trillion market cap. The platform’s UTXO’s Realized Price Distribution [URPD] metric indicated on-chain transaction volume grouped into price clusters.
These clusters formed an on-chain equivalent to the volume profile metric that is typically used in technical analysis. In short, a strong level of support or resistance level is formed where a large volume of tokens are transacted within a particular price band.
Notably, more than 1.98M BTC have been transacted above the $1 trillion threshold. This is equivalent to 10.6% of the circulating supply. This on-chain volume has formed one of the strongest on-chain support levels since Bitcoin was trading within the range $11k-$12k. The analytic platform also stated,
“Peak volume in this cluster hit 2.97M BTC, transacted between $58.5k and $59.1k. The average volume of this cluster is 1.52M BTC which is also higher than the majority of clusters transacted at lower prices. It is likely that this volume cluster will form a very strong support level”
Bitcoin [BTC] HODLers Are Back At It
BTC miners play a big part of the space and are accumulating at the current prices. This week, ‘Miner Net Position’ metric has made a comeback and is all green. This indicated that the miners are holding onto newly mined coins.
These spending patterns provided an interesting insight into the sentiment of some of the biggest bulls in the BTC market. This was in reversal of its previous trend when the network miners were net sellers of the cryptocurrency instead of holders as it was priced at $20,000 to over $40,000.