Bitcoin price jump after high on-chain activity in a range around September’s low levels boosted optimism about the prospects of digital gold in Q4 2021. Analysts at Glassnode share this view.
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#Bitcoin rallied last week, breaking out of an accumulation range where 10.3% of $BTC supply last moved.
In the mining industry, the difficulty ribbon is about to signal positive recovery, as miner revenues reach $40M/day.
Read more in The Week Onchainhttps://t.co/PxVciYLZb6
— glassnode (@glassnode) October 4, 2021
After the rally, about 10.3% of Bitcoin supply moved into unrealised profit. The total share of such coins reached 86.6%.
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Against a backdrop of significant on-chain transaction activity, analysts highlighted the range of $40,000–$41,000 as a zone of \”added value\” for buyers. It could later serve as support. Previously, similar coin accumulation was observed in a corridor from $29,000 to $41,000.
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As a result of the recent rally, short-term investors found themselves in a more favourable position. They managed to increase their share of profitable coins to 15.6% of the total supply. Glassnode classifies these participants as those who have completed the most recent trades within the last 155 days.
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The momentum among long-term hodlers was less pronounced — they hold 7.57% of \”unprofitable\” BTC, out of 11% of the total available supply in such a status.
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The average profitability of holder coins reached 2. In other words, at a price of $48,000 at the time of writing, the average cost basis of the BTC they acquired was $24,000. This LTH-SOPR value is characteristic of the late bear market and the early phase of an uptrend.
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The same metric for short-term investors approached 1. Typically, this indicates market support, which was confirmed last week.
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A return of STH-SOPR above 1, along with the price rise, indicates sufficient demand to absorb spent coins.
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Jamie Dimon, CEO of JPMorgan, acknowledged a tenfold rise in Bitcoin.
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