Bitcoin Rally: Almost 90% of Supply in Profit, Analysts Watch for Momentum
Bitcoin (BTC) experienced a robust recovery over the past weekend, climbing to $66,000 after encountering selling pressure last week.
Analysts are closely observing the potential momentum of the Bitcoin price in the near term. However, a substantial portion of the Bitcoin supply is still in profit, exerting some pressure on the upward movement from here.
Recent on-chain data reveals that 88.8% of the Bitcoin supply is currently in profit. Although this figure remains relatively high, it has notably declined from its earlier peak this year.
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 pic.twitter.com/ZOBSU9RdDj
— On-Chain College (@OnChainCollege) April 21, 2024
The last time the percentage reached this level was on February 7th, 2024, when the price of Bitcoin was recorded at $44,000. Analysts are now closely watching to see if Bitcoin can maintain its current momentum or if a further cooldown period is necessary for the market.
Some market analysts, like Nebraskagooner, believe that if Bitcoin surges to $75,000 from its current position, it could indicate that the market has reached its bottom. However, if the price falls below $58,000, it suggests that the bottom has not yet been reached.
READ MORE: Early Bitcoin Contributor Reveals Previously Undisclosed Emails with Satoshi Nakamoto
Moreover, the Bitcoin MVRV ratio indicates a prime buying opportunity at this point. According to crypto analyst Ali Martinez, whenever the Bitcoin MVRV Ratio dips below its 90-day average since November 2022, it suggests a favorable BTC buying chance, historically yielding an average gain of 67%! This pattern has emerged once more, indicating that now could be an ideal moment to purchase BTC.
Martinez notes that Bitcoin’s correlation with the Global Liquidity Index remained strong until 2024. However, this year, the correlation has broken. Martinez emphasizes the necessity of a liquidity boost before the US elections to sustain the ongoing BTC bull market. Despite fees paid to Bitcoin miners spiking to 1,258 BTC, the creation of new BTC addresses has dwindled, registering only 260,838. The recent surge in Bitcoin transaction fees has been primarily due to the Runes protocol.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
