On-chain indicators are pointing toward positive sentiment for bitcoin, the world’s largest cryptocurrency by market capitalization.
The bitcoin supply "in profit," which is the percentage of existing coins whose price at the time they last moved was lower than the current price, has increased since the start of the year, according to data from Glassnode. The indicator has increased by over 20% since early January.
“This implies that larger and longer-term investors currently hold profitable on-paper spot positions,” Bitfinex analysts wrote in a report. “This trend is healthy for the latter half of a bear market as a sustained 30-day uptrend after an extensive downtrend on this indicator has historically provided a good buy signal for the following two years,” the report added.
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