The Bitcoin price continues its post-halving retrace, moving into a phase of widespread net redistribution, according to Glassnode. The report identifies a cohort of investors driving the current sell-side activity.

Bitcoin has had an impressive run in 2024, breaching its all-time high on March 5. Since then, it has consolidated within the $60,000 and $67,500 range over the last two weeks. Glassnode's accumulation trend score indicates that BTC's rise to all-time highs revealed local distribution patterns, similar to previous bull runs.

Glassnode explains that the accumulation trend score intensified as geopolitical tensions in the Middle East escalated, causing a correction to $60,300. BTC spot trading volume has surged since spot Bitcoin exchange-traded funds (ETFs) began trading in the United States on Jan. 11, positively impacting price momentum.

The net unrealized profit and loss (NUPL) metric, which measures the magnitude of net paper profits (or losses) held by the market, has been greater than 0.5 for the last seven months, indicating a "classic euphoria phase of a bull market."

However, short-term holders (STH) have dominated the market, leading to the latest correction. Glassnode expects the cost basis of younger age bands to be valuable in distinguishing between bull and bear market structures. As the market price approaches each subcohort’s cost basis, their pace of spending can be anticipated to slow down, signaling seller exhaustion.

Glassnode concludes that the market may be forming a local bottom as the price resides within the $60k to $66.7k range, meeting the MVRV condition. This suggests that the market could be hammering out a local bottom formation in the near term.