Glassnode Report: Bitcoin Establishes Solid Base Below $30,000

• Blockchain data company Glassnode reports that Bitcoin’s supply distribution has formed a solid base below $30,000.
• The majority of Bitcoin holders in profit are long-term investors who either hold onto their coins or take profits as prices rise.
• Once a 75 to 25 profit-to-loss ratio is achieved, a significant “digestion” process occurs, leading to an accumulation period.

Bitcoin’s Solid Base Below $30,000

According to Glassnode, a company specializing in on-chain data, Bitcoin’s supply distribution has created a robust foundation beneath the $30,000 mark. The firm’s recent report indicates that the current profit-to-loss ratio is 75 to 25, meaning only a quarter of all coins were purchased above $30,000.

Long-Term Investors Dominate Profitable Holdings

Glassnode’s report further elaborates that the group in profit is predominantly composed of long-term investors. These individuals either hold onto their coins, a strategy known as “hodling,” or they take profits as the price of Bitcoin increases. The report suggests that a significant number of coins have changed hands in the past year, with a large cluster of purchases made between $15,000 and $30,000. However, only 25% of the supply was bought at prices above $30,000, with these purchases made during the 2021/2022 cycle.

Accumulation Period Follows Profit-to-Loss Ratio

The blockchain data firm also notes that once a 75 to 25 profit-to-loss ratio is reached, a substantial “digestion” process takes place, leading to an accumulation period. These accumulation periods are typically characterized by a lack of significant macro market movements and several months of volatile trading. As the market seeks this balance point, it remains to be seen whether a long and volatile process will ensue.

Glassnode had previously noted in one of its reports that Bitcoin is currently exhibiting movements similar to those seen before previous bull seasons.