On July 26 Glassnode uploaded surprising data about Bitcoin’s latest trip to five figures and suggested that the current journey above $10,000 will be much different than the last few.
Bitcoin hodlers delay on selling at $10,000
As Cointelegraph reported, BTC/USD suddenly crushed the last remaining resistance below $10,000 on Sunday, rising to hit highs of $10,200.
The excitement was short-lived, with the pair then dropping to circle the $9,900 level at press time.
BTC/USD 7-day chart. Source: Coin360
Bitcoin has passed $10,000 several times in 2020, but Glassnode’s analysis suggests that this time differs from the rest because of the Bitcoin days destroyed indicator.
Bitcoin days destroyed is a measure of the value of each BTC transaction, taking into account how long it has been since the coins involved last moved.
Previously, jumps above $10,000 resulted in an increase in the Bitcoin days destroyed metric, suggesting that long-term holders were using the opportunity to trade or sell.
So far, however, the weekend’s optimism has yet to repeat the trend.
“In contrast to the last two times $BTC hit $10,000 USD, we haven't seen an increase in #Bitcoin Days Destroyed today,” Glassnode summarized.
Bitcoin days destroyed 24-hour chart. Source: Glassnode/ Twitter
Weekend crypto gains surprise markets
Cautious optimism that Bitcoin is destined for higher levels still has become a theme in itself among traders in recent months.
When PayPal sparked rumors of crypto acceptance in June, for example, talk immediately turned to Bitcoin’s potential to seal not only $10,000, but as much as $12,000 in the short term.
Network fundamentals remain encouraging, while Sunday’s spurt similarly marks a firm contrast to the pattern of compression that Bitcoin exhibited in prior weeks. A cycle of higher lows and lower highs had placed BTC/USD in a narrowing corridor that analysts agreed must soon break.
Altcoins were similarly bullish on the day, with Ether (ETH) breaking firm resistance at $280 in a move which surprised even more than Bitcoin. At press-time levels revolved around $310.