Analyzing Bitcoin’s Recent Rally and Investor Behavior
- Over 80% of Bitcoin supply is now in profit, hitting highs not seen in two years.
- Robust accumulation patterns and optimistic sentiment reflect strong market performance.
- Despite the surge, the modest magnitude of unrealized profit suggests cautious long-term holders.
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Bitcoin has experienced a recent surge, with prices hitting $37.9k. Notably, over 80% of the Bitcoin supply is now in profit, marking a significant milestone for investors.
The Accumulation Trend Score reveals based on reports obtained show a robust accumulation during the recent price expansion. Different wallet sizes are witnessing a shift in accumulation patterns, instilling confidence among investors. The strong market performance, coupled with optimism about a spot BTC ETF, has led to increased investor activity.
Examining the current percentage of supply in profit, which stands at 83%, we observe a substantial deviation from historical averages. The market has entered the Bear/Bull Transition phase, indicating recovery from the 2022 bear trend.
Unraveling Bitcoin’s Profit Landscape: Metrics, Behavior, and Future Directions
Distinguishing between coin volume in profit and the magnitude of unrealized profit, we find a moderate level despite a significant volume in profit. The analysis of the Unrealized Profit indicator sheds light on its relationship to past bull market euphoric phases.
The growing gap between long-term holder (LTH) and short-term holder (STH) supplies is evident. LTH supply has reached new highs, contrasting with the decline in STH supply. Existing holders’ reluctance to sell suggests a requirement for higher unrealized profits.
Introducing tools gauging Long-Term Holder spending behavior and supply cycles, we explore Bottom Discovery, Equilibrium, and Price Discovery phases. The Spending Binary Indicator (SBI) helps assess LTH divestment conditions.
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Navigating Bitcoin’s Market Sentiment: Recent Trends and Future Outlook
By merging the SBI indicator and the relative position of spot price and LTH cost basis, we establish categories for spotting shifts in LTH divestment: Capitulation, Transition, Equilibrium, and Euphoria. Recent market sentiment, post the rally above $37.1k, is discussed.
Emphasizing the volume of coins in profit reaching levels last seen two years ago. Despite this, the modest magnitude of unrealized profit suggests long-term holders are yet to lock in profits. A disclaimer underscores that the report provides information and education, not investment advice.
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