Is This Bitcoin Bull Run Sustainable? Glassnode Report Says This
The current Bitcoin bull run has been a wild ride, and many are wondering if it's sustainable. According to a recent Glassnode report , the answer lies in the behavior of long-term investors and the dynamics of bull market corrections.
The report highlights that Bitcoin has been consolidating in the mid-$60k range since reaching its ATH of $73k in mid-March. During this consolidation, long-term investors have started to re-accumulate coins for the first time since December 2023.
One key metric to watch is the Net Unrealized Profit/Loss (NUPL) ratio, which measures the magnitude of net paper profits or losses held by the market. The report notes that the Euphoria phase of the bull market, characterized by NUPL > 0.5, has been in effect for the last 7 months .
However, even the strongest uptrends experience corrections, and these events offer valuable insights into investor positioning and sentiment. The report identifies two conditions that signal a potential local low inflection point:
- *MVRV (1m-1w) is below 1, but above 0.9*: This indicates that recent buyers are experiencing significant financial pressure.
- *Realized Loss (1w-1m) exceeds +1sd*: This suggests that recent buyers are panic-selling their coins .
In conclusion, while the current Bitcoin bull run is showing signs of sustainability, it's essential to remain cautious and monitor key metrics, such as the NUPL ratio and the behavior of long-term investors. By doing so, investors can better navigate the dynamics of bull market corrections and make more informed decisions.
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