This break of $10k looks very different than previous $10k tests...
BTC HODLers appear to be looking for much higher prices than the current $10k surge we are seeing right now.
Based on a very interesting chart put out by glassnode using the the Bitcoin Days Destroyed indicator, it looks like this time around people are not selling as bitcoin approaches $10k.
The data can be seen here:
(Source:
As you can see, the previous two times that bitcoin got up around $10k, the BDD (Bitcoin Days Destroyed) metric also shot way up as well...
This time around, the metric hasn't really budged at all...
Interesting.
Ok cool, so what exactly is the Bitcoin Days Destroyed metric and what is it telling us?
I'm glad you asked!
The Bitcoin Days Destroyed metric is basically a measure of the transaction volume of bitcoin.
More specifically it gives higher weighting to coins that haven't moved in a long time.
It's calculated by taking the number of Bitcoins in a transaction and multiplying it by the number of days it has been since those coins were last spent.
For example...
If someone has 10 BTC that they received a week ago and they spend it then 70 bitcoin days have been destroyed.
Still slightly confusing, I know, but basically as it stands now it seems to be telling us that the last two times bitcoin made a run at $10k, hodlers used that as an opportunity to sell or take profits.
This time around, they are not doing that.
How come HODLers are not selling on this $10k test?
It could be one of two things in my opinion...
Either these HODLers think the price is going higher now on this 3rd test and they don't want to sell this time around, after all a triple top is like a camera-shy Kardashian, it doesn't really exist.
Or...
It's the weekend and many haven't been able to sell just yet, or aren't paying attention just yet.
We will have a clearer idea tomorrow when the stock market opens, the new weeks begins, and we have updated data on the bitcoin days destroyed metric.
As it stands now though, it looks like the price could go a lot higher based on the fact that hodlers are continuing to hodl.
I know I won't be selling any around the current levels.
Stay informed my friends.
-Doc
I only buy when it hits 10k
Did you buy then?
Add a zero to 10k and I will be happy to sell!
You and me both. Do you think it could really hit that number?
I have no idea... seems like it will always trade at a premium to the cost to mine it but too far above will cause too many miners...
If there are "too many miners" the difficulty keeps going up and up and up making people spend more and more resources to acquire the same amount of coins, which pushes the cost of production up. Bitcoin is a self correcting animal.