Bitcoin's Price Set for Uptrend in 2023: Glassnode's Perspective on Market Performance
Summary:
On-chain analytics firm Glassnode anticipates Bitcoin's price trajectory for 2023 to reflect its beginning, following a 30% rise in October. Overcoming key trendlines at $35,200 this week, the market looks promising for Bitcoin, with investor profitability improving. Notably, long-term holders own more than 75% of available BTC supply. Glassnode suggests the coming weeks will be crucial to monitor market trends, as the groundwork for a Bitcoin price incline seems in place.
The Bitcoin (BTC) price trajectory for 2023 is expected to mirror its inception, according to on-chain data analysis company Glassnode. As Bitcoin nears a 30% rise in October, the firm's latest weekly insights, known as “The Week On-Chain,” suggest that last week laid a solid groundwork for an anticipated Bitcoin price incline.
As a result of surpassing $35,200 this week, Bitcoin has successfully raced past several trendlines that previously served as support for months. These include several moving averages (MA), such as the traditionally acknowledged “bear market” support line found at the 200-week simple MA of $28,400.
"A group of long-haul simple moving averages of price hovers around $28k and has, until now, acted as a market resistance through September and October," Glassnode reported. It also added that Bitcoin bulls had gathered enough strength this week to outdo the 111-day, 200-day, and 200-week averages, after the market had gradually increased over the course of a month.
The recent breakthrough led to a significant improvement in the profitability of many investor groups. The notional 'cost basis' of speculators and recent market entrants also stands close to $28,000. The average recent investor now sees an average profit increase of about 20%.
In a chart of the short-term holder market-value-to-realized-value, Glassnode shows how profitable short-term holdings have been and noted no significant signs of capitulation. Researchers attested: "This recent correction found a notable base, acting as a precursor to this week’s rally.”
As per previous reports by Cointelegraph, the current ratio of short-term holder entities relative to their seasoned counterparts, the long-term holders (LTHs), is at a record low. Despite facing their challenges with profitability, LTHs now possess over three-quarters of the available BTC supply. Their cost basis is further down towards $20,000.
Although some predict a potential return to this region, Glassnode maintains a positive outlook for the year-end, suggesting that "The market has surpassed several key points where collective investor psychology is likely to be grounded, making the forthcoming weeks crucial to monitor.”
According to the on-chain monitoring resource CoinGlass data, BTC/USD is currently up by 26%, which remains quite modest by October standards. It's important to remember that investing and trading carry inherent risks, hence sufficient research and careful decision-making is advised.
Published At
10/27/2023 8:38:00 AM
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