Although Bitcoin may be fragile, IntoTheBlock data is now available from the April 30 London session. watch that the market is, after all, strong.
In an article on X, the blockchain analysis platform noted that Bitcoin is in an intermediate bull cycle. Despite the price decline, potentially accelerated by the exit of whales, most BTC holders are still benefiting.
86% of BTC holders are in the money
At press time, BTC is closing in on the $60,000 round number, down 16% from all-time highs. Bitcoin is trading in a range after strong gains in Q1 2024. Analysts have been looking for clear support in the $60,000 and $61,000 areas.
Conversely, resistance lies at the $68,000 level, a price level that the bulls failed to conquer after April 22.
Even at spot rates, IntoTheBlock observes that 86% of all BTC holders make a profit. Although this figure is lower, it could suggest that prices are in a consolidation phase following the gains in the first quarter of 2024.
Bitcoin had surpassed 2021 highs by mid-March, hitting a new all-time high of $73,800. At this price level, all users who had purchased the coin, even at the 2021 highs, were in the money.
As prices consolidate, confidence is high across the board. Some analysts expect the coin to explode as bulls resume the uptrend from February to March.
The Bitcoin market is balanced, are whales entering or exiting?
So far, the market value to realized value ratio (MVRV) is 2.17, supporting this confidence. MVRV compares the market capitalization of Bitcoin to the total realized value of all BTC in circulation.
Analysts use it to assess average profit margins at any price level. Usually, when the MVRV report is greater than 1, this suggests that BTC holders are underwater. Meanwhile, when it exceeds 1, as it does, it indicates that investors may choose to exit at a profit.
Historical data shows that a selloff occurs when MVRV is above 3.7. At 2.17, the market is broadly neutral, with holders optimistic.
Still, as sentiment rises, IntoTheBlock highlights some potential hurdles that could slow the recovery or, if bullish, accelerate the rally. Over the past week, the platform observed that whales making trades over $100,000 generated over $91 billion in trading volume.
This could mean that deep-pocketed investors, including institutions, could enter the market – a net positive – or, worse for the bulls, exit, thereby slowing the uptrend.
Featured image from Canva, chart from TradingView
