• Bitcoin on-chain metrics look bullish according to Bitfinex report
• Data from Glassnode shows the “in profit” measure of market sentiment has risen 20% since January
• The trend is healthy for the latter half of a bear market, providing a good buy signal for the following two years
Bitcoin On-Chain Metrics Bullish
The supply „in profit,“ a measure of market sentiment, has risen 20% since January according to data from Glassnode. Bitfinex analysts have reported that this implies larger and longer term investors currently hold profitable on-paper spot positions. This trend is considered healthy for the latter half of a bear market as it provides a good buy signal for the following two years.
Bitfinex Report Highlights
Bitfinex analysts reported that this trend could be seen as bullish for bitcoin and other cryptocurrencies in terms of on-chain metrics. The report highlighted that although bitcoin and the wider crypto market have been trading well below all time highs reached in November 2021, cryptocurrencies are still showing encouraging signs in terms of market sentiment.
Data From Glassnode
Glassnode reported that since early January, bitcoin’s “in profit” indicator has increased by over 20%. This means that more coins whose price at their last movement was lower than its current price are now being held by investors. It also suggests that longer-term investors are beginning to adopt an optimistic outlook towards bitcoin prices overall.
Market Sentiment Positive Sign
Overall, Bitfinex reports that this increase in „in profit“ supply suggests positive sentiment towards bitcoin and other cryptocurrencies. This trend could potentially provide a good buy signal for cryptocurrency prices in 2021 and beyond as more long-term investors enter the space with optimism about future price trends.
Crypto Market Performance
Despite overall bearishness regarding bitcoin prices throughout 2021, these on-chain metrics suggest there may be light at the end of the tunnel. By looking at indicators such as „in profit“ supply, traders can gain valuable insight into how long term investor sentiment may affect future performance and make more informed decisions when determining when to enter or exit positions within crypto markets.