Glassnode's latest BTC price analysis states that the rise of Bitcoin "lays the foundation for the recovery of the upward trend in 2023".In the latest weekly newsletter "On Chain Week" released on October 24th, researchers believe that the past week has "laid the foundation" for the upward trend of BTC prices
Glassnode's latest BTC price analysis states that the rise of Bitcoin "lays the foundation for the recovery of the upward trend in 2023".
In the latest weekly newsletter "On Chain Week" released on October 24th, researchers believe that the past week has "laid the foundation" for the upward trend of BTC prices.
Bitcoin prices have "convincingly" broken through resistance levels
When Bitcoin reached $35200 this week, it surpassed various key trend lines supported in previous months.
This includes various moving averages (MAs), including the 200 week simple moving average of $28400- the classic 'bear market' support line.
Glassnode pointed out, "A set of long-term simple moving averages of approximately $28000 provided resistance to the market throughout September and October
After a month of market strength, this week the bulls found enough strength to convincingly surpass the 111 day, 200 day, and 200 week moving averages.
During this process, the returns of various investor groups have significantly improved. The so-called cost base for speculators and new market entrants is also close to $28000.
The report states: "The cost base for short-term holders (STH) is currently $28000, which means the average return for ordinary investors is expected to reach+20%
Researchers uploaded a chart of short-term holders' market to book value ratio (STH MVRV) to track STH's profitability. They pointed out that even before the rebound in October, there was no significant surrender seen.
They explained, "We may see a relative depth correction of -20% or more for STH-MVRV in 2021-2022
Although the sell-off in August hit a low of -10%, it is worth noting how small the decline in MVRV is compared to this, indicating that the recent adjustment has found significant support and is a precursor to this week's recovery.
Bitcoin lays the foundation for a bull market
As reported by Cafebitcoin, the existence of STH entities is currently at a historical low compared to long-term holders (LTH).
Despite facing its own profitability issues, LTH now has over three-quarters of the available BTC supply for the first time.
Their cost base is relatively low, around $20000- although some believe Bitcoin may still return to the region, Glassnode remains optimistic about the end of this year.
Glassnode concludes, "A large portion of suppliers and investors now find their average breakeven price above around $28000
This laid the foundation for the recovery of the upward trend in 2023. At least, the market has broken through several key levels that can anchor investors' overall sentiment, so the trend in the coming weeks is very important.
According to data from CoinGlass, an on chain monitoring resource, Bitcoin has risen by 26% this month - still relatively mild by October standards.
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