– Bitcoin price sustained its recent gains and held steady above $42,500 on Wednesday.
– Glassnode report shows that $635.7 billion worth of Bitcoin is held by long-term holders as of December 17.
– BTC price is currently approaching a level where nearly 90% of the supply is profitable.
Bitcoin price sustained nearly 3% weekly gains as price steadied above the $42,500 level on Wednesday.According to a recent Glassnode report on Bitcoin, in 2023, long-term, short-term and average holders turned from unprofitable to a moderately profitable state.While unrealized profit/loss is not at a euphoric high, it has crossed the break-even level.
At the time of writing, Bitcoin price is $42,600 on Binance.
Also read:
Bitcoin price could climb to $45,000, alongside updates in Spot Bitcoin ETF filing by BlackRock
Daily Digest Market Movers: Bitcoin held by long-term holders hits highest level in 2023
– According to Glassnode’s 2023 review for
Bitcoin, Ethereum and altcoins, BTC held by long-term holders hit 14.9 million https://www.fxstreet.com/cryptocurrencies/news/ripple-joins-crypto-firms-in-78-million-initiative-to-support-pro-crypto-candidates-in-us-elections-202312191323, as of December 17.
– Between January 1 and December 17, 2023, Bitcoin’s long term holders added 825,000 BTC to their holdings, as seen in the chart below.
– In the same timeframe, short term holder supply dropped by 506,000, it sits at 2.317 million BTC tokens on December 17.
Bitcoin Long/Short-term holder supply threshold.Source: Glassnode
– As Bitcoin price rallies higher, Glassnode analysts state that a “super-majority” of investor coins have turned to profitability.Coins held in losses have declined to 1.9 million BTC and the biggest chunk of these tokens are held by long term holders that acquired Bitcoin during the 2021 highs.
– Bitcoin supply held “in-profit” has climbed to 90% of the circulating supply.Bitcoin started 2023 with 50% of its supply underwater, the run up to 90% marks one of the fastest recoveries in the asset’s history.
Bitcoin percent supply in profit
– A majority of Bitcoin’s long term holders have profitable coins, with the upcoming Bitcoin halving and the likely approval of Spot Bitcoin ETFs, the stage is set for BTC price to rally in 2024.
Technical Analysis: Bitcoin price eyes gains in 2023
Bitcoin price maintained its uptrend, forming higher highs and higher lows.BTC price sustained above $42,000 for the third day this week, eyeing a comeback to $44,700, seen on December 8.
Once Bitcoin price crosses the resistance range between $44,700 and $45,300, the asset is likely to target the $48,000 level, as seen in the
chart below.
BTC price is currently above its three long-term Exponential Moving Averages (EMAs) at 10, 50 and 200-days.
BTC/USDT 1-day chart
In the event of a daily candlestick close below $42,000 could invalidate the bullish thesis for Bitcoin price.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money.
This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens.If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents.To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand.The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies.
Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.It provides a clear picture of Bitcoin’s interest among investors.A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin.A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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