Bitcoin posted its strongest quarterly returns since its all-time high in November 2021. Moreover, BTC has gained more than 80% year-to-date, making it the best-performing asset of 2023 so far.
By comparison, gold is up just 9% in the same period, and the tech-savvy Nasdaq 100 Index has managed to gain about 20% since Jan. 1. In addition, the S&P 500 has managed to gain only 8.5% since the start of the year.
On April 17, on-chain analytics provider Glassnode confirmed Bitcoin’s performance, saying:
“The strong market performance in 2023 is a stark contrast to 2022, and signals a positive system shift in the making.”
Bitcoin bulls back in play?
Glassnode did mention that bitcoin and gold prices have recently correlated in the wake of yet another US banking crisis. The company too Investigation The premise of a return to a complete bull market.
You mentioned that a large amount of BTC has come back into profit recently. In 2023, a total of 6.2 million bitcoins returned to profit which is roughly a third of the supply. He added that this gives “an indication of how large that cost base is, less than $30,000.”
Do # Bitcoin bear market?
With a 100% uptick from the lows, BTC dollars Trading is taking place over a very large pool of supply, which made up the floor of 2022.
This week, we’re investigating indicators of whether the market is making a strong bear market recovery…or not.https://t.co/eeQ1xeE07I pic.twitter.com/PKHJc7EF18
– glassnode (glassnode) April 17, 2023
Furthermore, the NUPL metric is currently neutral, indicating that BTC is neither oversold (as it was under $20K) nor overbought (as it is at over $50K). ).
“This coincides with previous cycles where there has been a transition between bear markets and bull markets.”
In addition, Bitcoin traders with coins older than three months seem reluctant to sell, even with the rally to $30,000.
Glassnode concluded that several on-chain indicators indicate that “bear market conditions, or at least the worst of them, may now be behind us.”
Cooling the crypto market
The price does not move in a straight line, so whether the market is bullish or not, there will be corrections. Bitcoin dropped below $30,000 in a 1.8% decline on the day to trade at $29,464 at the time of writing.
It is still a 9% gain over the past month, but it is set to turn back after hitting severe resistance at the $30,000 level. The support is currently around $28,000, so this level might be revisited over the next week.
The total market cap fell 1.2% to $1.3 trillion, according to CoinGecko.
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