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- Bitcoin’s (BTC) price has sustained its rally and is up by 4.77% over the past 24 hours.
- The current growth is being speculated by many to be the start of a new bull run with the bottom already kicked in.
The ongoing rally in the digital currency ecosystem has been shown to be different from all those seen in the past year with Bitcoin (BTC) trading above the $21,000 threshold for the first time in close to 90 days. According to data from crypto analytics service provider, Glassnode, Bitcoin now has more realized profits on-chain for the first time since June 2022.
For the bear market that has been ravaging the crypto ecosystem since the beginning of last year, it becomes quite unusual to print impressive and sustained price growths for days. This is what Bitcoin has done and the premier digital currency is currently up by 1.80 percent to $21,183.10 over the past 24 hours. This growth is complementary to the 22.83 percent it has accrued over the trailing 7-day period. With this type of growth, investors tend to lose their HODLing resolve.
For the first time since June, #Bitcoin has seen a greater volume of Profits realized on-chain than losses |…] During bear cycles, this tends to act as a psychological level where investors sell at, or near break-even, creating resistance.
For the first time since June, #Bitcoin has seen a greater volume of Profits realized on-chain than losses.
During bear cycles, this tends to act as a psychological level where investors sell at, or near break-even, creating resistance.
Full Analysis: https://t.co/4PyCTobCUz pic.twitter.com/L0bBq2323f
— glassnode (@glassnode) January 16, 2023
Is the bottom truly in for Bitcoin (BTC)?
The recent price rally has gotten a lot of investors enervated and expectant for more. In reality, waiting out the bear market can be too much of an ask for long-term holders, and a sign of growth makes many wonders if the bottom is in and the bull cycle has finally kicked in.
While the on-chain metrics are very crucial at this point, especially with the fact that Bitcoin has not characteristically retraced its growth after it notably crossed the 200-SMA above the $19,500 threshold. Many are beginning to read this resilience as an indication that perhaps the bottom has set in for the cryptocurrency, paving the way for only an uptrend from here onward.
Despite the fact that the majority of wallet addresses are in profit at this time, Bitcoin (BTC) still has a long way to get to its previous All-Time High (ATH) of $68,789.63.
While its 69.19 percent slump from this price level seems daunting, expectations abound that a return to its 52-week high at $48,086.84 will be a significant compensation to the oldest HODLers of the digital currency.
The major basis for growth
For Bitcoin to record a renewed growth bounce that will, at least, see its price rise above the $1 trillion mark, it must receive unwavering support from institutional investors across the board. While the likes of BlackRock and American business intelligence and software firm, MicroStrategy Incorporated continue to hold onto its’ big BTC portfolio, other corporate buyers must join in the action to help cushion the impacts of erratic selloffs from retail investors.
The big money buyers (whales) are notably staying cautious in the market at this time considering the implosion of the FTX Derivatives Exchange. The selling point for BTC, however, revolves around the coin’s decentralized nature and its independence from any entity whatsoever.
