On-chain data shows that around 91% of all bitcoin holders have entered the green following the latest rally towards the $66,000 level.
bitcoin Has Enjoyed Strong Bullish Momentum Recently
bitcoin started the new week on a positive note as its price rose around 4% to return to the same highs as at the end of last month. The following graph shows what the recent trajectory of the cryptocurrency has been like.
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The price of the asset appears to have been riding an uptrend in recent days | Source: BTCUSDT on TradingView
At the peak of this latest rally, bitcoin had briefly touched the $66,500 mark, but since then, the coin has seen a pullback, although the degree of it is not too significant as the price is still trading around $65,500.
The asset's recent rise would naturally have had an effect on investor returns, as on-chain data has confirmed.
An Overwhelming Majority of btc Investors Are Now Afloat
According to data from the market intelligence platformx.com/intotheblock/status/1845855539911155836″ target=”_blank” rel=”noopener nofollow”> on the block91% of the bitcoin user base now has unrealized profits. The analysis firm has shared what the different btc price ranges currently look like in terms of the number of investors who purchased their coins in them.
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The latest cost basis distribution on the btc network | Source: x.com/intotheblock/status/1845855539911155836/photo/1" target="_blank" rel="noopener nofollow">IntoTheBlock on x
On the chart, the size of the dot corresponds to the amount of btc that has its cost basis in the corresponding price range. It would appear that some large dots have turned green following the asset's recent rally, implying that a large number of addresses have returned to generating net profits.
You also see that the points ahead are not too big, which makes sense considering that only 9% of investors are still underwater. These loss-making holders may react to a retest of their cost basis through panic selling, so large areas of demand above the asset price may be potential sources of resistance.
However, as future price ranges do not include the cost basis of too many investors, any resistance that emerges may not be too notable. That being said, this does not mean that btc would find it easy to break through these latest levels on the way to the all-time high.
When a large number of investors make profits, the risk of a profit-driven sell-off can become significant. As such, although the upcoming resistance appears to be weak, bitcoin could still struggle to reach a new high given that 91% of investors are in profit.
In some other news, bitcoin whales have been showing a long-term accumulation trend this year, as noted by one analyst in a CryptoQuant Quicktake. mail.
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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 btc in their wallets. You can see from the chart that the 30-day change in its holdings has been almost entirely positive this year so far, suggesting relentless buying.
Featured image by Dall-E, IntoTheBlock.com, CryptoQuant.com, TradingView.com chart
