Significant Majority of Bitcoin Already in Profit Status - Implications for Bitcoin's Future Direction
Rock on! Here's a fresh take on that Bitcoin biz:
Bitcoin's MVRV zips back to historical support level, 1.7 & friends
Gossip with your mates* Grab a brew* Relax, we're talkin' Bitcoin!
If you been keepin' your nose buried in the crypto-world, you've probs heard Bitcoin's been on a roll lately. It shot up from $83k to a local high of $97k!
Now, guess what? A boatload of Bitcoin holders are lookin' great in the green thanks to Glassnode data. About 88% of the Bitcoin supply is in profit at the moment!
So yeah, both short-term and long-term players are winnin' here, especially those who copped Bitcoin for $94k or less.
Now, with everybody feeling all peachy keen in the profit zone, the losses are piled up on buyers who grabbed Bitcoin at $95K and up.
As margins rises, Bitcoin bounced back from its long-term mean of 75% - a sign that investor expectations are changin'. It means there's less panic in the market. This feels good, right? Demand stays strong enough to swallows up all them profit-takers! Comfortable vibes all around, suggesting a steady price recovery.
Remember 2024? When Bitcoin staged a strong comeback after retestin' this mean at an average price of $60K for a few months? Well, the current range, between $76K and $95K, could be the bottom, level where Bitcoin might surge again, based on past patterns.
Fun Fact: Glassnode reports that Bitcoin holders are sellin' less, thanks to the MVRV Ratio pullin' back to its long-term mean of 1.74. Historically, this number's been associated with holdin' consolidation. It's like nature's coolin' off period for unrealized gains - a key support level!
CryptoQuant's Scoop: Bitcoin holders ain't exactly sellin' to cash in on their gains, but they're definitely goin' ham with the buyin'! Despite recent gains, Netflow shows Bitcoin's recorded four days of negative flows out of the last seven. This means demand's still snatchin' up Bitcoin, even during profit realization.
Now, let's take a peek at the Average True Range (ATR). It's fallen to 2.4K, hintin' that market conditions are chillin' out, with minimal upward or downward momentum. The Bitcoin say-so game's goin' on within a tight range.
History 101: When ATR dropped to 2.1K back in November 2024, it triggered a Bitcoin rally to $108K. Intriguing, ain't it?
With profit realization slowin', the overall sentiment is shifty, turnin' a bit more positive. These folks in profit are rulin' the roost, while others keep grabbin' more Bitcoin. This balance strengthens Bitcoin's chances of breakin' out from the current consolidation.
If this market chillax vibe persists, Bitcoin'll probably reclaim $96K, maybe even try for $98K. But if consolidation lingers, anxious holders might start sellin', makin' a possible dip to $92,900.
Join the Convo! Are you stoked about Bitcoin's price recovery? We'd love to hear your thoughts! Take our survey for a chance to win $500 USDT! And don't forget FLOKI might make an appearance soon. Stay tuned!
Sources:- Glassnode- CryptoQuant- TradingView
Whew! That was a wild ride, but now we're all caught up on Bitcoin's recent shenanigans.
- Despite Bitcoin's recent surge to $97k, about 88% of Bitcoin's supply is currently profiting its holders, according to Glassnode data.
- Short-term and long-term investors are currently reaping benefits, especially those who purchased Bitcoin below $94k.
- Losses are accumulating for buyers who bought Bitcoin at $95k and above due to rising margins.
- The flexibility in the market is depicted by Bitcoin's recovery from its long-term mean of 75%, indicating a change in investor expectations and less market panic.
- In the past, Bitcoin demonstrated a strong comeback after testing this mean at an average price of $60k for several months, suggesting that the current range could be a potential base for another surge.
- The MVRV Ratio, reported by Glassnode, has receded to its long-term mean of 1.74, historically associated with holding consolidation and a key support level for unrealized gains.
