Bitcoin (BTC) surpassed $50,000 on February 12, marking its highest level since December 2021 and experiencing a 15% rally in February.
However, BTC currently faces resistance at the $50,000 mark, as shown on the daily chart. On February 13, the price retraced by over 2% following the release of the United States Consumer Price Index report, which revealed a 3.1% annual inflation rate, surpassing expectations.
According to blockchain analytics firm Glassnode, Bitcoin is approaching a potential transitional phase. Long-term BTC holders have spent more than 300,000 BTC since November 2023. This data suggests that investors may start taking profits, especially since Bitcoin has only closed above $50,200 for 141 days since 2021, accounting for 2.84% of its trading history. Currently, a majority of investors are in a favorable position, with only 13% of the total supply experiencing losses above $48,000. This coincides with BTC’s recent unspent transaction output (UTXO) ratio data.
The UTXO ratio measures the number of transactions in profit or loss by comparing the price when a specific UTXO was created or destroyed. A high UTXO ratio means that the coins haven’t moved since their creation. After Bitcoin reached $50,000, the UTXO ratio reached 96.62%, indicating that investors are starting to see more profit.
In contrast, short-term holders (STHs) have experienced a reset. During the spot exchange-traded fund (ETF) rally, the STH supply in profit reached its peak at 100%. However, BTC’s correction to $38,000 reduced the average profit to 57.5% for STHs.
Bitcoin ETFs also saw significant net inflows last week. According to Bloomberg senior ETF analyst Eric Balchunas, the cumulative net flows for 10 ETFs exceeded $3 billion. A CoinShares report highlighted that the total crypto assets under management reached $59 billion, the highest since 2022.
The strong inflow of Bitcoin ETFs has pushed the Coinbase premium index into a premium, indicating an increase in buying pressure on the exchange.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions as every move involves risk.