At least 83% of existing Bitcoin addresses are currently in a state of profit, according to Glassnode.
That’s a 43% increase since bitcoin’s precipitous crash on March 12, now known as the ‘Black Thursday.’ At the time, only 45% of all the BTC addresses were profitable – a low for 2020.
Per the new data, the highest proportion of addresses in profit this year reached 89% on June 1, when the price of bitcoin rose above $10,400, it’s highest level in nearly four months.
Bitcoin investors are, however, not as profitable as they were a year ago. As the BTC price peaked at around $13,900 for 2019, addresses in gain spiked to 95% on June 26.
The latest Glassnode figures may bode well for the long-awaited bullish breakout, as they indicate bitcoin is not overbought, just yet. A reading above 95% usually indicates the opposite.
Chainalysis has also published new analysis showing that the majority of bitcoin investors hold their coins for the long-term, suggesting that appetite to sell is not as strong, even though profit-taking can still happen.
The crypto analytics firm said over 60% of all the 18.6 million BTC mined is held for long-term investment while only 19% or 3.5 million bitcoin is actively traded on exchanges throughout the world.
Bitcoin has repeatedly tried to breach $10,000 since the block reward halving on May 11, succeeding on few occasions, but the breakouts never lasted, as strong resistance set-in. Traders consider $10,000 a key level for a bullish upswing.
Want to stay updated on a daily basis?