Bitcoin is in a good position according to on-chain data from Glassnode!
On-chain technical data is supporting the positive movement of Bitcoin price. BTC rallied to $66K before making a new higher-high for the first time since March 2024. Although the price has dropped below the $60K support this week, Glassnode claims that there is a lot of on-chain data supporting a trend reversal.
And this reversal has many similarities to the 2015-2016 and 2019-2020 cycles. This means that the downtrend is coming to an end. A deeper analysis of on-chain data shows that more Bitcoin is moving into a long-term investment position (LTH). This is a very good signal for Bitcoin's growth potential in the near term.
A large amount of Bitcoin was purchased near the ATH of $73,835 and these investors are currently losing money. However, the unrealized loss is still small, they are not under too much pressure.
Next, let's look at STH-MVRV - an index measuring the profits of short-term traders in the Crypto market. If STH-MVRV increases, the BTC price is higher than the actual value, which can be a risky signal. Because traders will take profits at any time, putting pressure on the price. Currently, the STH-MVRV index is at 0.62, equivalent to 62% of the supply of STHs that are profitable. Not too high.
=> All on-chain parameters reflect that the market has reset, escaping the hot growth context of the end of September 2024.
