Over 80% of Bitcoin wallets are now profitable – is a bull trend ahead?
Recent data on Bitcoin [BTC] indicates that it has reached its highest level of profitability in nearly two years.
Bitcoin shows a pre-bull run trend
IntoTheBlock revealed that around 80% of Bitcoin wallets currently hold the asset at a profit. This marks the highest level of profitability since December 2021.
The surge in profitability can be attributed, in part, to the spot price at which the majority of these wallets initiated their trades.
The current profitability level places BTC in a comparable position to that observed in 2020–21 before the bull run.
Comparing Bitcoin year-to-date price trend
An examination of Bitcoin’s daily timeframe price trend showed a notable difference between the spot price at the beginning of the year and the present.
Initially, BTC commenced the year within the $16,000 price range, subsequently experiencing a consistent rise leading to the $22,000 price range.
Furthermore, there was a subsequent rise to the $26,000 price bracket. These levels represent the entry points for a significant portion of the associated addresses, explaining the current profitability level.
As of the latest update, Bitcoin was trading at over $38,000, marking an almost 3% increase in value over the past 48 hours. This current price signifies a doubling of value compared to the year’s outset.
Also, the chart showed a continuous uptrend for over two months, as confirmed by the Relative Strength Index (RSI) analysis. The RSI, currently around 65, shows a strong bull run, approaching the overbought zone.
Analyzing the BTC long-term MVRV
Analysis of the Bitcoin 180-day Market Value to Realized Value ratio (MVRV) on Santiment confirmed the profitability data by IntotheBlock.
The MVRV chart showed that holders have consistently remained in a profitable position, with only occasional trends going below zero. Since around 20th October, the MVRV has consistently maintained levels above zero.
Read Bitcoin (BTC) Price Prediction 2023-24
As of the latest update, the MVRV was around 24%. This indicates that BTC holders would realize a profit of over 20% if they chose to sell at the current market price.
The trend suggests that more addresses may enter profitability once there is a full bull run.