Return of Bitcoin Holders Hit Rare Bullish Metric
CriptoFácil – The month of January this year was one of the best in the history of Bitcoin. The biggest cryptocurrency on the market rose more than 40% and with it a metric hit a rare bullish signal.
Bitcoin’s price, above $23,000, has surpassed the cost base of short- and long-term holders, according to market analyst Will Clemente. Thus, according to him, there are more Bitcoin investors in profit than in loss.
He points out that this scenario has happened only three times before in the history of . In all of them the movement was followed by a bullish rally.
He points out that the cost basis for long-term holders is $22,300, while for short-term holders it is $18,900.
Thus, both values are below the current quote of $23,000. While there are holders from both groups who bought at a higher price than the current price and are still at a loss, the average costs of bitcoins purchased by each group are below the current price.
“The graph above shows the price of bitcoin relative to the cost base of short-term savers (dark blue) and the cost base of long-term savers (light blue). It appears that the price recently surpassed both curves”, he highlighted.
Also according to the analyst, the three previous times that the price surpassed both metrics were in mid-2012, late 2015 and early 2019.
“This intersection occurred after the price had bottomed out and in the midst of clearly bullish phases for the price,” he said.
Still according to the analyst, another coincidence with regard to historical data can be observed when it is verified that the base price of long-term holders has been predominantly below the base price of short-term holders, except close to the bottom of the price in each cycle.
“Short-term holders, which are those who bought in the last five months, have a lower average cost basis or price than the long-term cost basis. The situation is reversed when a clear bullish break appears,” he concluded.