According to the latest report from on-chain analytics firm Glassnode, Bitcoin (BTC) is on track to end 2023 on a positive note, as it continues to gain momentum with a nearly 30% increase in October. In their newsletter, “The Week On-Chain,” released on October 24th, Glassnode researchers noted that the past week has set the foundation for a potential uptrend in BTC’s price.
One of the key indicators of this positive trend is the fact that Bitcoin has convincingly surpassed several resistance levels this week, including various moving averages (MA) that had previously acted as support. The 200-week simple MA at $28,400, in particular, has been a crucial support line during bear markets. Glassnode highlighted that Bitcoin’s ability to break through these key trendlines demonstrates the strength of the bulls in the market.
This breakthrough in price has not only increased the profitability of various investor cohorts but has also put the average recent investor into an average profit of around 20%. The Short-Term Holder (STH) cost basis, the average price at which recent investors acquired their BTC, is now in the rearview mirror at $28,000. Glassnode’s researchers also provided a chart showing the short-term holder market-value-to-realized-value (STH-MVRV) ratio, which tracks the profitability of STH coins. They pointed out that there has been no major capitulatory behavior observed prior to the October upside, indicating a relatively stable market.
Furthermore, it is worth noting that the presence of short-term holders (STH) compared to long-term holders (LTH) is historically low. LTHs now own more than three-quarters of the available BTC supply for the first time, and their cost basis is lower, closer to $20,000. While some believe that Bitcoin could still return to that price level, Glassnode remains optimistic about the end of the year and the potential for a resumption of the 2023 uptrend.
The report concludes by highlighting that a significant proportion of supply and investors have crossed the average break-even price of $28,000, which serves as a psychological anchor. The coming weeks are expected to be important in determining the future trend of BTC. The current data from on-chain monitoring resource CoinGlass shows that BTC/USD has increased by 26% this month, which is relatively modest compared to previous months.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are advised to conduct their own research before making any decisions.
Overall, with Bitcoin’s recent price breakthroughs and the positive market indicators, there is a growing optimism in the cryptocurrency community that the year will end on a green note for BTC.