Despite a 120% price increase this year, Bitcoin (BTC) bull market “FOMO” has yet to materialize.
Data comes from statistical platform look at bitcoin It shows that on-chain transactions have just begun to involve “young” Bitcoin.
Bitcoin Bull Market Analysis: “We’re Still Early”
Bitcoin remains close to 18-month highs, well outside of its bear market trading range and several key resistance levels.
Although number of small wallets is increasing, but speculators (those holding BTC for the short term) are not generating significant returns for the network.
in a X posts On November 16, Look Into Bitcoin creator Philip Swift cited the Realized Cap HODL Waves indicator (also known as RHODL Waves) as evidence.
RHODL splits the existing HODL Waves indicator, which divides BTC into supply age groups and compares them to the price they last moved on-chain.
The result is a spike in token prices, with frequent fluctuations during bull market phases and the opposite in bear markets, with investors afraid to sell or holding assets at a loss.
“The warm low timeframe waves are just starting to increase as tokens move on-chain,” Swift commented on RHODL’s current state.
“No FOMO yet. We’re still early.”
Bitcoin Profitability Approaches ‘Potential Breakeven Point’
Onchained, a contributor to on-chain analytics platform CryptoQuant, continues to scrutinize the “age range” of Bitcoin supply, stressing that those who increased their Bitcoin exposure ahead of 2021’s all-time highs are still underwater.
Related: Bitcoin institutional inflows set to top $1 billion in 2023 due to tight BTC supply
He does this using the Net Unrealized Profit and Loss (NUPL) metric, which provides profit on the storage token cohort.
However, there is a critical bottom line on the horizon for bull holders.
“Considering NUPL across age groups can provide insight into profitability dynamics. Notably, the chart depicted shows that all UTXO age groups are currently profitable, with the exception of those who have held Bitcoin for 18 months to 3 years. There are others,” Onchained wrote in a report by CryptoQuant. Quickly understand market trends November 16.
“This is consistent with their entry points during Bitcoin’s price rise to $67,000. Their NUPL profitability benchmark of close to 0 suggests that if Bitcoin continues to rise above $39,000, a breakeven point may occur.”
CryptoQuant data shows that the overall proportion of unspent transaction outputs (UTXO) currently at a loss is only 11.6%.
According to Cointelegraph, whale entities have been increasing BTC sales at current prices.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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