With a 31.6% profit in the weekly chart, Bitcoin has been retaking his mantle as the king of the crypto market during the past days. The very first cryptocurrency by market cap has actually been relocating to the benefit with a strong conviction and appear poised to retake its previous highs.
At the time of writing, Bitcoin trades at $54,659 with a 1% profit in the daily chart. During this duration, BTC’s cost was turned down as it got in the mid-area around its present levels.
In support of the bulls, Glassnode records an increase in the number of BTC investors with “diamond hands” or less inclined to take profits on sudden moves. This metric now stands at an 80.5% of the Bitcoin overall distributing supply.
In that sense, 71.1% of the Bitcoin long term holders are in profit as BTC moved back into the $50,000, with a 9.4% at a loss and a 19.5% of the circulating supply in control of short-term holders. The latter are consisted of those financiers who took a position in BTC in the previous 3 months.
As seen below, Bitcoin has managed to climb to an all-time high in every previous bull market when the number of long-term holders reached or surpassed 54%.
At its peak in 2021, when the cost of Bitcoin touched the $64,000, Glassnode records a long-lasting holder’s portion of 67.7%. In combination with the low percentage of short-term holders, there seems to be enough evidence to suggest a continuation in the upward trend.
Further information provided by Glassnode shows an increase in the variety of BTC purchase by long-lasting holders because March 2021. During this period, long-term holders added over 2.35 million BTC to their addresses.
In contrast, just 180,000 Bitcoin (BTC) were released by miners. Therefore, long-term holders added 13x more BTC than those produced by this sector.
Bitcoin Fundamentals Favor The Bulls
Additional information offered by CryptoQuant kept in mind a decrease in the supply of Bitcoin held by crypto exchange platforms. This metric has dropped to a 1-year low, as seen in the upcoming chart.
During this duration, the chart reveals a direct connection in between the cost of BTC and its supply throughout exchange platforms.
However, CryptoQuant also notes almost no variation in the stablecoin supply ratio. On a decrease because May 2021, this metric is utilized to determine the need on the crypto market.
As the chart shows, BTC’s price took important hits when the stablecoin supply ratio dropped in March until the end of July when an uptick coincided with Bitcoin moving away from its previous range in the $30,000.
If the bulls are to have a major opportunity at retaking its previous all-time highs, the stablecoin supply ratio requires to get back at the annual open levels.
