Bitcoin (BTC) has changed the market feeling at around $95,000. Negotiations between the US and other countries to reach a customs agreement bring quiet to investors gradually entering assets that are considered “risk.”
GlassNode data, analytics company On-chain BTC and cryptocurrency, show it Price rebounds exceeded what they call “significant thresholds.” In particular, refer to “Basic Costs for Short-Term Holders” (STH). This base cost is currently at US$92,900, reflecting the average acquisition price of short-term investors who recently acquired BTC.
In a recent report, the company clarifies that “historically, ruptures that have been maintained beyond this price model have marked a transition between a period of bearish correction and a new upward trend during recovery.”
But… don’t get too excited yet! GlassNode analysts detail this should be interpreted as “the first flash of optimism,” but a complete regime change against bullish territory has yet to be confirmed.”
“Sustained strength above this level could improve market confidence as more investors return to important, unrealized returns.”
GlassNode, Bitcoin-on-chain analytics company and cryptocurrency.
GlassNode adds that the market’s impulse into the $95,000 zone “contains a significant recovery in non-investor profits.” This is a strong rebound from the minimum March as observed in the indicator of the percentage of profit offers, as seen in the image below.
This metric is used to enable Bitcoin status to be modified as a “happiness stage.” Must be more than 90% stable “During a long period of time that shows generalized profitability and increased investor reliability,” GlassNode says (but not specifying what you consider to be a “long term” but a week or 15 days?
Because they were not satisfied with the indicators analyzed so far, Glasnode experts also use “benefits/loss of STH supply”. Recently, this metric has been heading towards its neutral level, or about 1.0. Here’s a GlassNode about it:
“This suggests that short-term offers are distributed more equitably between currencies in terms of profit and loss, which is the balance point for this group.”
GlassNode, Bitcoin-on-chain analytics company and cryptocurrency.
According to the company, “This structure is important, and in previous bear markets, the aforementioned relationship is far below Level 1, which acts as a resistance roof.” GlassNode details, “whenever this metric is tested again, from underneath, it tends to correlate with the formation of local roofs as investors begin to close their position and stop their impulses.”
The metric must be greater than 1.0 to allow for robust recovery signals to be taken into account. For this reason, GlassNode advises that “in the coming weeks, it will help us to monitor the evolution of this ratio, particularly along with profits, and to determine if the market is recovering a more constructive recovery after this revision.”
Why isn’t Bitcoin rising at a higher price?
Why does BTC prices break his historic maximum if things are truly optimistic, as the analyzed data shows?
The answer to this is Just as there are many investors entering the market, many other investors are making a profit.
The GlassNode report confirms this by analyzing benefits, a sign that it has been recognized as “important.”
“Total time resolution profits are currently rising to $139.9 million per hour, with its core value roughly 17% above $120 million per $120 million,” the report said.
Details of GlassNode that this rebound suggests Many market participants are taking advantage of this price increase to secure profits.
And what must happen for the climb to continue? Simple: The market must absorb sales pressure without collapse.
“On the contrary, you can mark this move as another rebound for a dead cat in the context of making a big profit in order not to maintain these levels.
GlassNode detects it too “guilty” of this benefit Although they are not old bitcoiners leaving the market Mainly short-term holders. This group, we were able to qualify as «Swing Trader«This is what keeps BTC from rising at forces above $95,000, and we go and look for the largest historic zone.
These short-term holders are not minor groups as they are countering the impulses of Bitcoin ETFs. Anyway, this situation cannot last forever. When institutional and corporate purchases return strongly (This is mainly caused by stock equipment such as ETFs) BTC prices will be eliminated.
In conclusion, GlassNode refers to the fact that the recent rebound exhibited by BTC is a combination of this shift in investor sense and macroeconomic factors. Cryptonoticias reports that the “customs war” is continuing, but there are signs of a ceasefire and commercial agreements.
In this regard, Glasnode analysts mention it «Some metrics show an ongoing constructive recovery of Bitcoin».
«The market is at a turning point, and the important level to consider is the cost-based of the short-term holders, often defining the structure of the upward and bassist market. Alcistas should boost the market on top of this price model and store it there».
GlassNode, Bitcoin-on-chain analytics company and cryptocurrency.
