Glassnode’s New Investor Behavior Tool Reveals Who’s Driving Bitcoin Price Moves

The tool, which analyzes spending patterns, is designed to help users understand who is influencing price action—an essential insight for navigating crypto market cycles.

According to Glassnode, being able to identify whether a price move is driven by long-term holders or short-term speculators provides critical context for interpreting potential reversals, continuations, or blow-offs. The visual tool allows market participants to see the dominance of different investor types in real time.

The Power of On-Chain Segmentation

The visualization categorizes investor behavior into several groups, including:

Data shows that during bear markets, conviction buyers and long-term holders (often shown in green on the chart) typically increase their share of supply—signaling accumulation phases. Conversely, short-term actors like loss sellers and profit takers are more dominant during price peaks and periods of volatility.

This segmentation provides a clear window into market psychology, giving traders and analysts a more accurate view of who is selling or accumulating at any given moment.

A Strategic Tool for All Tokens

Although this feature was demonstrated using Bitcoin, Glassnode confirmed it is also available for Ethereum and major ERC-20 tokens. The application extends the tool’s relevance across a broader spectrum of assets and investor types.

With markets becoming increasingly data-driven, this type of behavioral analysis offers investors a strategic edge—especially in anticipating key inflection points in price.

Conclusion

Glassnode’s innovation bridges technical price charts with human behavior, providing a more nuanced view of what’s happening under the surface. As crypto matures, tools like these are poised to become indispensable for institutional and retail investors alike.

The post Glassnode’s New Investor Behavior Tool Reveals Who’s Driving Bitcoin Price Moves appeared first on Coindoo.