Following Bitcoin's price gains over the past week, the crypto world can once again claim that the majority of Bitcoin investments have made a profit for the investor - as 68% of Bitcoin addresses are now considered 'profitable' to it's owner, according to the latest data from research firm Glassnode.
The last time this happened was in the middle of last year, as can be seen in the graph that accompanies the firm's publication. At that time, the price of the cryptocurrency exceeded $40,000 and was in sharp decline.
Basically, it Means the Majority of BTC Holders Paid an Average Price Less than $22,000...
There's more positive statistic pointing towards Bitcoin's resilience.
Looking at 'dormant' coins (coins that have not moved for an extended period) 'lost' coins (coins believed to be in wallets no one has the key to) and long-term 'saved' coins (coins deliberately untouched by their owner, aka HODLing) are now at a 5-year high.
These coins contribute to stability and a higher floor price, because they are considered unlikely to be sold anytime soon .
Also, there are more people with at least 1 full bitcoin now than ever before.
End of the Bear Market in Sight?
While a good week doesn't mean we're out of a bear market, it does look like the sell-off is done. Those buying BTC say their current goal is accumulating more, and as they began dominating the market it became clear, buyers are greatly outnumbering sellers, which naturally led to the price increase. This behavior indicates that most BTC owners believe that there's another bull run coming.
Currently the market is a mixed bag of indicators pointing in both directions, we see sentiment among traders moving away from fear, which is part of a bear market coming to a close, but that's still premature to claim.
While traders feel more confident now than they have for months, another price dip before things go bullish is still something most traders see as possible. The main reason for skepticism is the larger economic situation, as the uncertainty resulting from national debit, layoffs, and inflation are shared by crypto investors regardless of where they're from.
Officially, this is still a bear market, and many believe it will stay that way until the overall economic situation improves - people are unlikely to make significant investments in crypto or anything else if they're not sure they will still have a job next month.
I Reached Out to 2 Pro-Analysts, Hoping for Some Insight on What Bitcoin's Next Move Could Be...
I've occasionally reach out to these guys for their opinions ever since I met them at Blockchain Expo Global in 2018.
One works for a US based investment firm some of you have most likely heard of, the other works at an international exchange I think nearly everyone is familiar with. Note that they are sharing their professional opinions, on a personal and unofficial basis. So while we cannot include their full credentials here - they're the real deal.
There was Consensus From Both That the Smart Thing to do Right Now: Probably Nothing...
The US based analyst explained "this is one of those occasional times where no one can predict what comes next... until we see what comes next" he asks to let him clarify, and adds "basically, there's nothing we would consider a strong indicator that BTC will move in either direction right now- actually, some of the typically reliable indicators are disagreeing with each other Ironically, what seems like a lack of data is actually an accurate look at the market's current state - it's legitimately undecided right now."
The analyst currently working for an exchange added "While I know I'll be wrong sometimes, I still think that if my level of confidence is below like 70% it's probably best not to say something that people will act upon, I wouldn't move any of my own funds around for a prediction from someone whos only 60% behind it."
What Should You Be Paying Attention To Over the Next Week?
If things take a turn and prices head back down, look for Bitcoin dropping below $20,000 - if it does, it may continue to drop to around $16,000, a proven strong support level.
On the other hand, if Bitcoin continues to make gains and manages to cross $24,500 we could see the rise continue to around $27,000.
A Reminder of The Market You're In:
Bitcoin tanked from $1,000 to below $200 in 2015.
Bitcoin dropped below $3,200 after hitting $20,000 in December 2017.
Bitcoin dipped from $63,000 to $29,000 in 2021.
Bitcoin went from $68,000 to below $20,000 in 2022, this is today's bear market.
After each of these events the media declared the "end of Bitcoin". Elderly professionals from the traditional finance and banking world would make sure to be seen in print and on TV saying "told you so" while warning everyone not to ever buy more Bitcoin.
What they don't say is that their grandson helps them anytime they need to send an email, and they literally couldn't buy Bitcoin if they wanted to (people under estimate how often this is the true reason an older person is anti-crypto)
EVERY. SINGLE.TIME. Those who stood firm in their belief in crypto's future were rewarded with prices hitting a new all-time high, every major crash as been followed by breaking previous records.
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Author: Oliver Redding
Seattle Newsdesk /
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