Bitcoin Bull Market: Are We Still Early?
If you’ve been waiting for the fear-of-missing-out (FOMO) phase in Bitcoin’s bull market, you might need to hold on a little longer, despite the coin’s price surging by 120% this year. According to data from Look Into Bitcoin, on-chain transactions are just beginning to involve the “younger” Bitcoin.
Bitcoin is currently near 18-month highs, way beyond its bear market trading range and several key resistance levels. Although the number of smaller wallets is increasing, there hasn’t been a major return to the network from speculators – those holding BTC for short periods of time.
Philip Swift, the creator of Look Into Bitcoin, recently pointed out the realized cap HODL waves metric in a tweet, indicating that there’s no FOMO yet – we’re still early in the bull market.
Bitcoin Profitability Near “Potential Breakeven Point”
The net unrealized profit/loss (NUPL) indicator reveals that most UTXO age bands are currently profitable, except for holders with Bitcoins in the 18-month to 3-year category. This implies a potential breakeven point if Bitcoin continues rallying beyond $39,000.
According to CryptoQuant, the overall proportion of unspent transaction outputs (UTXOs) currently at a loss is just 11.6%. A contributor to CryptoQuant noted that people who increased BTC exposure before the 2021 all-time highs remain underwater.
Hot Take: Despite The Surge, Bitcoin Bull Market Is Still Developing
Even as Bitcoin enjoys a surge in price, the data from Look Into Bitcoin and CryptoQuant indicates that we may be in the early stages of the bull market. The lack of FOMO and potential breakeven points suggest that there’s still more room for growth and opportunity for you to tap into the Bitcoin market.
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