Over the past weekend, Bitcoin (BTC) bounced back strongly, reaching a high of $66,000 following a period of selling pressure the previous week. Experts are closely monitoring the market to determine if Bitcoin’s price will continue to gain momentum or not. It is important to note that a significant portion of Bitcoin’s supply is currently in profit, which may limit its upward movement for now.
Bitcoin (BTC) Profit Supply
According to the latest information from Bitcoin’s transaction history, approximately 88.8% of the total supply is currently bringing its owners a profit. While this percentage is still substantial, it’s lower than what was recorded during earlier parts of the year.
The most recent occasion when the percentage hit this mark was on February 7, 2024. At that time, the price of Bitcoin stood at $44,000. Analysts are currently keeping a close eye on the situation to determine if Bitcoin will continue its current surge or if a cooling-off phase is required for the market to stabilize.
The % of the Bitcoin Supply in Profit is now at 88.8%
This is still elevated but has cooled down since the highs of earlier this year
The last time at this level was February 7th, 2024, when the price was $44K
Let’s see if BTC has legs here or if it needs a further cool down
— On-Chain College (@OnChainCollege) April 21, 2024
BTC Price Bottom
According to certain market experts such as Nebraskagooner, if Bitcoin’s value jumps up to $75,000 from its present level, this might be a sign that the market has hit rock bottom. Conversely, if the price drops below $58,000, it may mean that the market bottom hasn’t been achieved yet.
The Bitcoin MVRV ratio is currently signaling a potential buying opportunity, as it has dipped below its average from November 2022, according to crypto analyst Ali Martinez. Historically, this occurrence has led to an average gain of 67% for Bitcoin purchases. Given this pattern has resurfaced, it may be worth considering purchasing $BTC at the present moment.
According to Ali Martinez’s analysis, Bitcoin’s connection to the Global Liquidity Index was robust until 2024. However, this year marked a shift in their correlation. Martinez underlines the importance of enhancing liquidity prior to the US elections to maintain Bitcoin’s bull market. Despite mining fees reaching an all-time high of 1,258 BTC, the number of new Bitcoin addresses being created has decreased significantly, with only 260,838 registered. The recent increase in Bitcoin transaction fees can primarily be attributed to the Runes protocol.
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2024-04-22 07:55