On-chain data shows that about 91% of all Bitcoin holders have entered the green after the recent surge towards the $66,000 level.
Bitcoin has enjoyed sharp upward momentum recently
Bitcoin started the new week on a positive note with its price rising almost 4% to return to the same highs as at the end of last month. The chart below shows what the cryptocurrency’s recent trajectory has looked like.
The price of the asset appears to have been riding an uptrend in recent days | Source: BTCUSDT on TradingView
At the peak of this recent rally, Bitcoin briefly touched the $66,500 mark, but since then, the coin has suffered a pullback, although the degree of this is not very significant as the price is still trading around $65,500.
Naturally, the recent rise in assets has had an impact on investor profitability, as confirmed by on-chain data.
The vast majority of BTC investors are now above water
According to market intelligence platform data IntoTheBlock91% of the Bitcoin user base now holds some unrealized profits. The analytics company shared what different BTC price ranges currently look like in terms of how many investors have bought their coins from them.
The latest cost basis distribution on the BTC network | Source: IntoTheBlock on X
In the chart, the pip size corresponds to the amount of BTC whose cost basis lies in the corresponding price range. It appears that some large dots have turned green following the asset’s recent rebound, meaning a large number of addresses have returned to net profit.
It is also clear that the points ahead are not very large, which makes sense given the fact that only 9% of investors are still underwater. Such loss-making holders can react to a retest of the cost basis with panic selling, so large demand areas above the asset price can be potential sources of resistance.
Since the upcoming price ranges do not carry a cost basis for many investors, any resistance that appears may not be very noticeable. However, this does not mean that BTC will have an easy time crossing these last few levels on its way to an all-time high.
When a large number of investors make profits, the risk of mass selling motivated by profit taking can become significant. As such, even though the upcoming resistance looks weak, Bitcoin still has trouble reaching a new high since 91% of investors are locking in the gains.
In some other news, Bitcoin whales have shown a long-term trend of accumulation this year, as noted by an analyst at CryptoQuant Quicktake. mail.
The trend in the total balance of the BTC whales over the past year | Source: CryptoQuant
Whales refer to Bitcoin entities that hold between 1,000 and 10,000 Bitcoins in their wallets. From the chart, it seems clear that the 30-day change in their holdings has been almost entirely positive this year so far, suggesting continued buying.
Featured Image by Dall-E, IntoTheBlock.com, CryptoQuant.com, Chart by TradingView.com