In recent weeks, evidence abounds that suggests Bitcoin (BTC) has begun a new bull market. Data shows that capital inflow is strong, with much of it converting into unrealized profits. Additionally, on-chain signals are reminiscent of those observed in early-stage bull markets. This has led cryptocurrency analytics firm Glassnode to express a more confident sentiment in a return to the bullish market sentiment of 2021.
Bitcoin prices are now correcting from the 2021 high of just below $31,000 reached on April 14. However, the asset is still trading up 66% since the start of the year. In its Week on Chain report on April 24, Glassnode reported that the aggregate market has transitioned out of a regime of unrealized loss and into one of unrealized profit. The total magnitude of USD-denominated profits gained since the start of the year is still well lower than the 2021 highs and is similar to that of the period in 2019 when BTC values went from $4,000 to $14, 000. Glassnode went on to explain that despite the US regulatory war on cryptocurrency, total losses remain significantly low when compared to all major sell-off events since 2021.
In the same report, Glassnode also noted that Realized Cap, which is the cumulative sum of all realized profit and loss to date, has stabilized after recent outflows and appears to be pivoting. This, in turn, is leading to more favourable and profitable situations in the market as a whole, creating profitable environments and preventing holders from making large-scale losses. At the current exchange rate, BTC is trading 1.0% lower and is sitting in the short-term range-bound channel of $27,443. If a deeper correction takes effect, greater support would be found at around $25,000. Despite these trends, Glassnode still believes market decisions are yet to be made as signs of accumulation and distribution across different wallet units remain mixed. As a result, Glassnode speculated that it could still be a little while longer until the full-on start of the next bull market.
Liam Smith
- 2023-04-25
Has Bitcoin Begun a New Bull Market?
Recent evidence suggests that Bitcoin (BTC) has begun a new bull market, with capital inflow, signs of accumulation, and on-chain signals all suggesting BTC is returning to the bullish market sentiment of 2021.
