On-chain data shows around 91% of all Bitcoin holders have gone into the green following the recent rally towards the $66,000 level.
Bitcoin Has Enjoyed Sharp Bullish Momentum Recently
Bitcoin started the new week on a positive note as its price rose by around 4% to return to the highs it reached at the end of last month. The chart below shows what the latest cryptocurrency looks like.
The price of the asset appears to have been riding an uptrend in recent days | Source: BTCUSDT on TradingView
At the peak of this recent rally, Bitcoin briefly touched the $66,500 mark, but since then, the coin has been pulling back, although its level is not very significant as the price is still trading around $65,500.
The recent increase in assets could have contributed to investors’ profits, confirmed by on-chain data.
An Amazing Majority Of BTC Investors Are Now Over Water
According to data from market intelligence platform IntoTheBlock, 91% of the Bitcoin userbase now holds some unearned interest. The analytics company shared how BTC prices are currently varying according to the number of investors who bought their coins from them.
The latest cost basis distribution on the BTC network | Source: IntoTheBlock on X
In the chart, the size of the dot corresponds to the BTC price with a cost basis in the corresponding price range. It may seem that some of the big dots have turned green after the recent asset recovery, which means that a large number of addresses have returned to net profit.
It can also be seen that the previous dots are not very large, which makes sense because only 9% of investors are still underwater. Such owners at a loss can react to a reassessment of their cost base by panic selling, so areas of high demand in excess of asset value can be powerful sources of resistance.
Since forward prices do not carry the cost basis of most investors, however, any resistance that emerges may not be very visible. That said, this does not mean that BTC will have an easy time clipping these last few levels on the way up.
When a high number of investors enter profits, the risk of a large sell-off occurring with a profit motive can be high. Therefore, even though the upcoming resistance seems weak, Bitcoin may still have trouble reaching new highs as 91% of investors are sitting on gains.
In other news, Bitcoin whales have shown a long-term rallying trend this year, as an analyst pointed out in a CryptoQuant Quicktake post.
The trend in the total balance of the BTC whales over the past year | Source: CryptoQuant
Whales refer to Bitcoin organizations that hold between 1,000 and 10,000 BTC in their wallets. From the graph, it can be seen that the 30-day change in their holdings has been almost positive this year so far, suggesting persistent buying.
Featured image from Dall-E, IntoTheBlock.com, CryptoQuant.com, chart from TradingView.com