According to the Glassnodes Coin Dormancy Scale, Old Hands sells Bitcoin (BTC). As shown below, inactive addresses that sell BTC are characterized by previous peaks in BTC.

Bitcoin sleeping currency. Source: glass node
Network analyst Willie Wu said that old hands reliably sold the top right up to the last price cycle. he wrote:

“Hibernation is a measure of selling old hands. It’s interesting to see how reliably old hands sold before the current cycle. They sold the bottom of #bitcoin for between $ 3,000 and $ 4,000, and they’re on sale now.”
There are several reasons why Bitcoin holders have long sold Bitcoin at the current price. BTC has tripled since March, and it’s not a bad area to make money on sellers. The $ 12,000 range has been strong opposition over the past two months.

Have sleeping Bitcoin HODLers proved to be true this time?
Apart from the various technical reasons, there are cyclical reasons that can cause dormant bitcoin holders to sell.

Bitcoin has returned negatively in the last two quarters. BTC’s downward trend over the last quarter, combined with $ 12,000 resistance, may force owners to make a profit.

However, some technical analysts believe that Bitcoin is about to start a new cycle. Over the coming months, BTC may continue to move up to higher resistance levels and not see much decline.

Philbfilb, a well-known cryptocurrency analyst, has identified the cycle after the half-year seen in 2017. He said BTC had reached a full-time high after the eruption the same week four years ago. he wrote:

“It is difficult to avoid Bitcoin’s cyclical behavior. In the same week, 4 years ago, Bitcoin finally tried to break the 50% Fibonacci retracement level for the bear market. After that, it did not look back and tested ATH by January. Is it different this time?
The trader also notes that institutions seem hungry for bitcoin at a record level. Following heavy investments in Bitcoin from MicroStrategy and Square, institutional demand for BTC has grown significantly.

The volume of niche platforms, including Bakkt and LMAX Digital, has grown significantly in recent weeks. Flap added:

“Although they do not make up the bulk of OI – institutional-sized traders were quite lingering only last week.”
Bitcoin (BTC) technical setup is bearish in the short term, but basics are strong
Most of the short-term bearish signals for Bitcoin are technical signals, not basic. The various basics, including bitcoin hash, point to increasing momentum.

On October 19, the bitcoin hash rate reached a full-time high again, which is a very optimistic trend, especially after halving on May 11, said cryptocurrency venture capitalist John Todaro:

“Bitcoin’s hash rate has reached a full-time high again. The recent rise in prices has increased mining revenues, and encouraged more miners to allocate more resources to the network, thus increasing the hash speed. What happened to this assignment about the vortex of death in a mine After halving?

Source: CoinTelegraph