- More than 78% of BTC holders realized profits on their investments.
- The crucial $35,000 level held the key to Bitcoin’s next direction.
Bitcoin [BTC] has been flirting with the $35,000 mark lately, indicating a fierce battle between the bulls and bears at the key level.
According to an analysis company in the chain InHetBlok, the level was exceeded twice in the past week. Although BTC was trading slightly lower at the time of writing, the prospect of a major breakout was reinforced by certain bullish signals on the chain.
Bitcoin in a state of profit
IntoTheBlock stated that more than 78% of BTC holders realized profits on their purchases. This statement made sense after AMBCrypto took a closer look at Glassnode’s popular NUPL indicator.
Normally, values above zero indicate a state of net profit. Moreover, the figures suggested that market sentiment was trending towards optimism.
Source: Glassnode
Another way to assess the profitability of the market was to research the market Spent Output Profit Ratio (SOPR). Note that unlike NUPL which tracks unused supply, SOPR looks at coins that have actually moved up chain.
The SOPR indicator showed an upward trend, indicating that coins were sold at a profit on average. Moreover, this sounded like a possibility of an increase in liquid supply in the near term, an opportunity for many potential buyers to get their hands on BTC.
Source: Glassnode
Bulls welcome signals in the chain
IntoTheBlock further elaborated on the importance of the $35,000 mark, noting that a whopping 1.94 million addresses purchased BTC at this level.
If the king coin managed to remain stable, the bulls might have been able to score a “huge win,” the analytics firm noted.
Source: IntoTheBlock
Bullish trends were also discovered in technical analysis. Popular sleuth Will Clemente shared his interpretation of the Relative Strength Indicator (RSI) on social platform X.
Read BTC price forecast for 2023-2024
According to him, it sent a positive signal and ensured a return of strength to the market.
1W RSI on $BTC entered overbought territory for the first time since February 2021.
The shorter term may not be the best to watch, but on a cycle basis this is positive as it indicates that there is finally some strength back in this market. pic.twitter.com/B8xr7UaoWr
— Will (@WClementeIII) November 7, 2023
Bitcoin holders became greedy, according to Hyblock Capital, meaning they were in the mood to buy more. Typically, the index assumed that greed increases asset values in the short term.
Source: Hyblock Capital