- At press time, Bitcoin was trading above its value Hot offer Realized price.
- This is considered a bullish sign.
Bitcoins [BTC] The price has risen above the Warm Supply Realized Price, suggesting the start of a new uptrend, crypto analyst Ali Charts noted in a recent post on X (formerly Twitter).
#Bitcoin is now trading above the Warm Supply Realized Price of $28,150, suggesting the start of a new price run $BTC uptrend as long as this level lasts! pic.twitter.com/HJSR6QVzNI
— Ali (@ali_charts) October 17, 2023
How much are 1,10,100 BTCs worth today?
BTC’s Warm Supply Realized Price metric tracks the average price at which the less active cohort of short-term BTC (STH) holders purchased their coins.
When the price of BTC rises above this benchmark, it is considered a bullish signal because it suggests that buyers are now willing to pay more to acquire BTC than they have in the past 30 days.
At the time of writing, BTC exchanged hands at $28,713, while data from Glass junction sets its Warm Supply Realized Price at 28,150. This meant that at its current value, the leading coin was trading at a relatively higher price than the recent average price at which the coin was acquired.
If BTC can hold above $28,150 in the coming days and weeks, Ali said it would further indicate that a new uptrend is underway.
However, if the price falls below this benchmark, it would indicate that sellers have started selling their coins below their cost basis, signaling the return of bearish sentiments.
How profitable have BTC investments been in recent days?
According to data from Santimentthe ratio of BTC’s daily transaction volume to gains and losses, observed on a seven-day moving average, was 1.23 at the time of writing. This meant that for every unit of BTC sold at a loss, 1.5 units were sold at a profit.
Source: Santiment
This is a bullish signal, indicating that more traders are selling their investments at a profit than at a loss.
A closer look at the spent output profit ratio (SOPR) showed that BTC STHs have made more gains on their investments than those who have held them for longer periods.
According to Glassnode AcademyAn asset’s SOPR measures the amount of profit and loss incurred by its holders over a given period of time.
When an asset’s SOPR is greater than one within a given period, it means that assets sold at the current price were sold at a profit. Conversely, when an asset’s SOPR is less than one within a certain time period, those who sold within that time frame suffered losses.
At the time of writing, the STH-SOPR was 1.01. Data maintained by CryptoQuant showed that this has been rising steadily over the past three days, indicating that all trades from investors who have held BTC for less than 155 days have returned profits.
Source: CryptoQuant
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On the other hand, long-term holders (LTH) of the coin have not been so lucky. At the time of writing, the coin’s LTH-SOPR was trending down after crossing the zero line on October 16.
With a reading of 0.96 at the time of writing, the trades completed by this cohort of investors over the past two days have largely resulted in losses.
Source: CryptoQuant