13% of BTC supply returns to profit as Bitcoin sees 'massive' accumulation
Bitcoin (BTC) hodlers are returning to profit as new data hints the BTC price has put in the “foundation” of a macro bottom.
The latest figures from on-chain analytics firm Glassnode shows a large swathe of the BTC supply heading “into the black” as BTC/USD passed $18,000.
After gaining nearly 5% in 24 hours, Bitcoin is back on bulls’ radar ahead of a crunch United States inflation data release.
What the impact will be remains uncertain, but on-chain analysis is eyeing a more important phenomenon already playing out on the market.
The latest price uptick has seen a considerable number of bitcoins flip from unrealized loss to unrealized profit — it is now worth more than when it last moved.
If this means that investors who bought below the current spot price are in profit, it suggests that a significant amount of the BTC supply changed hands in an area between there and recent multi-year lows.
This in turn has implications for price performance, as those investors buying in establish formidable price support.
“Simple Bitcoin tools like Supply in Profit return massive edge for those who pay attention,” Checkmate, Glassnode’s lead on-chain analyst, commented about the data.
The terms “capitulation” and “accumulation” correspond to classic market cycles, notably that of Wyckoff, which calls for an accumulation period following a macro low, which should later lead to the market’s next bullish phase.
In terms of numbers, at $18,200, 13% of the circulating BTC supply had returned to profit, according to Glassnode.
“The observed sharp move upwards in this metric helps to confirm that a large volume of BTC was acquired between $16.5k and $18.2k,” the firm reiterated.
Bitcoin at one-month highs meanwhile provides a stark contrast to post-FTX
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