Originally published on: October 03, 2024
Bitcoin’s recent recovery to $66,000 has brought hope to investors after setting a new higher high for the first time since its all-time high in March. While the price dipped under $60,000 this week, Glassnode suggests that onchain metrics indicate a potential shift in the market dynamics.
The rally, which has seen Bitcoin surge by 26.5% from its low of $52,550 on Sept. 6 to a three-month high of $66,508 on Sept. 27, mirrors previous cycles, showing a similar trading pattern as seen in 2015-16 and 2019-20 recovery periods.
Analysis of onchain metrics reveals a trend of more coins transitioning into long-term holder (LTH) status. The long/short-term holder supply ratio has reached its highest level since June 2021, indicating increased confidence among long-term investors in Bitcoin’s future growth potential.
Furthermore, a significant volume of Bitcoin purchased near the all-time high of $73,835 has now matured, and the supply held at an unrealized loss by LTHs is on the rise.
The short-term holder market value to realized value (MVRV) metric has also shown improved profitability for this cohort during the recent rally. Over 62% of short-term holders now hold their supply in a profitable position, easing concerns for recent buyers.
These onchain metrics suggest that Bitcoin investors are now in a better and more profitable position compared to just a few weeks ago. This presents an exciting moment for BTC investors, as indicated by Glassnode analysts.
Disclaimer: This article does not offer investment advice. Readers are advised to conduct their own research before making any investment decisions.
