Bitcoin is currently finding solid ground at the crucial support level of $42,700, according to a recent analysis by cryptocurrency expert Ali. The stability at this level gains significance as a staggering 642,000 wallets have accumulated a total of 347,000 BTC, signaling a robust defense line for the world’s leading digital currency.
Analyst Ali took to the X platform to share the insights, stating that if the bullish momentum persists, there is a potential for a significant upward push toward the next major supply zone at $47,300. As per Ali’s analysis, this level is home to 614,000 wallets collectively holding 427,000 BTC.
However, the crypto community remains on edge, with all eyes on the $42,700 support. In the event of a breakdown, the next critical level to monitor is $38,000, which could mark a crucial turning point for Bitcoin’s short-term trajectory.
Glassnode Report: Bitcoin Dominance in 2023
In a recent report by Glassnode, Bitcoin has continued to assert its dominance as one of the best-performing assets globally in 2023. The leading cryptocurrency has outpaced traditional assets, boasting a year-to-date appreciation of over 140%. Notably, Bitcoin’s value has more than doubled relative to gold, maintaining its dominance in the broader digital asset landscape.
Glassnode’s report reveals that Bitcoin’s current market position is well above the True Market Mean Price of $31,000. This suggests a substantial recovery for most Bitcoin holders who weathered the storm of the 2022 bear market. Historically, such recoveries have signaled a shift towards a more optimistic bull market sentiment.
Delving into the specifics, the report highlights the positive developments for both Long-Term Holders and Short-Term Holders. Long-term holders, witnessing a YTD rally, have seen the proportion of their holdings in profit surge from 56% to an impressive 84%. This surpasses the all-time average value of 81.6%, indicating a potentially sustained bullish trend.
On the other hand, Short-Term Holders are reveling in their positions, with over 95% of their holdings currently in profit. According to historical metrics, this level suggests an enthusiastic uptrend, aligning with previous strong market upswings. However, the broader market sentiment remains cautiously optimistic for the leading cryptocurrency, with indications pointing towards a potential bullish continuation in the coming weeks.
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