90% of Bitcoin Addresses in Profit
A recent analysis by IntoTheBlock shows that over 90% of Bitcoin addresses are currently in profit, even though the cryptocurrency is down more than 31% from its all-time high. This milestone indicates a recurring pattern in Bitcoin’s bull cycles, where holders reach this level of profit multiple times in each cycle. The increase in profitable addresses could incentivize holders to consider selling their assets.
According to a tweet by IntoTheBlock, “With Bitcoin’s swift move past $46k, over 90% of all BTC addresses are now in profit. Historically, Bitcoin holders reached this level of profit several times in every bull cycle, including in the early stages of each cycle.”
This abundance of profitable addresses may lead some BTC holders to capitalize on their gains and sell their assets. Additionally, the excitement surrounding the first spot Bitcoin ETF in the United States is pushing Bitcoin closer to the coveted $50k mark.
Bitcoin’s Golden Cross
Crypto commentator Moustache has observed that Bitcoin is on the verge of forming a golden cross between the 21-day Exponential Moving Average (EMA) and the 50-day Simple Moving Average (SMA). The last time such a crossover occurred was almost eight years ago in 2016. This convergence of moving averages is often interpreted as a bullish signal, indicating a potential shift in market sentiment towards positive momentum.
The formation of a golden cross in the 21EMA/50SMA for Bitcoin could be a crucial point in its price trajectory and may shape the direction of the cryptocurrency in the near future.
Hot Take: Bitcoin Addresses Profitability and Technical Analysis
The recent analysis revealing that over 90% of Bitcoin addresses are currently in profit highlights the resilience and potential of the cryptocurrency. Despite its decline from the all-time high, Bitcoin has consistently shown a pattern of profitability in its bull cycles, providing an incentive for holders to consider selling their assets.
On the technical analysis front, the formation of a golden cross between the 21-day EMA and the 50-day SMA for Bitcoin indicates a potential shift in market sentiment towards positive momentum. This rare occurrence may have significant implications for the future price trajectory of Bitcoin.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.