Bitcoin’s new bull market kicks off 6 charts show that 80% of BTC wallets have made a fortune.

Bitcoin's Bull Run Begins 6 Charts Reveal 80% of BTC Wallets Have Seen Lucrative Returns

Author: Bitcoin; Source: Bitkoala Koala Finance

Has Bitcoin entered a new bull market?

In the early morning of December 6th, Bitcoin briefly broke through the $44,000 resistance level, reaching a new high since April 2022. At the time of writing this article, it has stabilized around the $43,000 price range. According to IntoTheBlock data, currently about 80% of Bitcoin wallets are in a “profit” state, which is the highest level of profitability for Bitcoin holders since December 2021. The current level of profitability for Bitcoin holders has also reached a level similar to the pre-bull market of 2020-21.

In this article, Bitkoala Koala Finance will conduct an in-depth analysis using six charts.

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The first chart comes from the latest global asset market value ranking disclosed by 8marketcap. It shows that with the strong rebound in the price of Bitcoin, its market value has surpassed the three giants of Warren Buffett’s Berkshire Hathaway, Elon Musk’s Tesla, and Mark Zuckerberg’s Meta (formerly Facebook), reclaiming its position as the 9th largest asset in the world by market value.

The second chart shows the price trend of Bitcoin from May to the present year. You will find that the spot price of Bitcoin at the beginning of the year and the current spot price have significant differences. The price range of Bitcoin at the beginning of the year was $16,000, then continued to rise, reaching a price range of $22,000 and quickly rising to $26,000. This level explains the current profitability level of Bitcoin well, and the current price of Bitcoin has doubled in value compared to the beginning of the year.

The third chart shows the trend of the Bitcoin 180-day market value to realized value ratio (MVRV) presented by on-chain analysis company Santiment. This chart shows that Bitcoin holders have been in a profitable state recently, with occasional trends falling below zero, and since around October 20, 2023, the MVRV has remained above zero. The latest value shows that the MVRV ratio is about 24%, which means that if BTC holders choose to sell at the current market price, they will make a profit of over 20%. This trend also indicates that once a comprehensive bull market appears, more addresses may realize profits.

So, what is the likelihood of Bitcoin’s price rising before the end of the year if history repeats itself? The fourth chart above shows the trend of Bitcoin supply and profit disclosed by CryptoQuant. The current value of this indicator is 83.13%, a decrease from 84.36% on November 25th. This is actually a positive trend because when this indicator rises, it means the end of investor profits, which may lead to selling pressure and a decline in Bitcoin prices.

However, due to a decrease in profit supply, this means that Bitcoin has a chance to recover before the end of the year. Although $45,000 seems a bit far-fetched, Bitcoin may have a chance to maintain a price range of $40,000. As long as it can do this, then Bitcoin can continue its positive development.

Next, let’s take a look at the trend of the Relative Strength Index (RSI), a technical indicator, as shown in the fifth image above. Currently, the Relative Strength Index of Bitcoin has fallen to 46.23. This trend indicates that sellers dominate the market. If this indicator falls below 40, market participants can view it as an opportunity to buy Bitcoin at a discount and accumulate in this range. By doing so, the buying pressure may push BTC towards a better trend.

Another indicator worth paying attention to is the Exponential Moving Average (EMA). Currently, the 20 EMA (blue line in the above chart) is higher than the 50 EMA (yellow line in the above chart), indicating that the trading price of BTC may continue to stay within the current range for the next few weeks.

The key indicator shown in the last analysis chart is the Spent Output Profit Ratio (SOPR), which represents the level of profit realized by long-term holders (LTH) and short-term holders (STH). The higher the ratio, the higher the profit long-term holders spend compared to short-term holders. Data shows that the current Bitcoin SOPR indicator has increased but is still far from the peak reached on November 1. This may indicate that the current market has not yet reached the top and still has greater potential for further upward movement. If short-term holders can maintain stability in supply and profit ratio, BTC may have even more surprises soon.

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