BTC Price Breaks Resistance Levels
Bitcoin (BTC) is poised to end 2023 on a high note, according to on-chain analytics firm Glassnode. The cryptocurrency has seen substantial gains in October, with the price nearing a 30% increase. In its latest weekly newsletter, "The Week On-Chain," released on October 24, Glassnode researchers argued that the past week has laid the groundwork for a BTC price uptrend. As the price reached $35,200, Bitcoin surpassed several significant trendlines that had previously acted as support over the past months.
Improved Profitability for Investors
The breakthrough in resistance levels has resulted in improved profitability for various investor cohorts. Bitcoin's price surge has led to an average profit of +20% for recent investors, with the average cost basis for short-term holders (STH) now at $28,000. Glassnode researchers uploaded a chart of the short-term holder market value to realized value (STH-MVRV) ratio, which tracks the profitability of STH coins. They noted that the recent correction found significant support, suggesting it may be a precursor to the rally seen in recent weeks.
Positive Outlook for Bitcoin's Future
The presence of long-term holders (LTHs) versus short-term holders is currently at historically low levels. Despite facing their own profitability issues, LTHs now own over three-quarters of the total BTC supply for the first time. Glassnode is optimistic about the end of the year, as a significant portion of supply and investors are now above the average break-even price. This lays the foundation for a resumption of the 2023 uptrend. However, the market's performance in the coming weeks will be crucial to watch.
October Gains and Future Prospects
According to on-chain monitoring resource CoinGlass, BTC/USD has seen a 26% increase this month. While this may seem relatively modest by October standards, it further reinforces the positive trend for Bitcoin. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
