Bitfinex Publishes Bitcoin (BTC) Report: Bull Signal?

On-chain data, according to analysts’ statement Bitcoin (BTC) indicates a positive sentiment towards

Analysts: “The Profitable Bitcoin Supply Rises”

According to data from Glassnode, the supply of Bitcoin “in profit,” the percentage of coins whose price was lower than the current price at the time they last moved, has increased since the beginning of the year. The indicator has increased by over 20% since the beginning of January.

“This means that larger and longer-term investors currently hold lucrative spot positions on paper,” Bitfinex analysts wrote in a report.

“This trend is healthy for the second half of a bear market, as a sustained 30-day uptrend following a broad downtrend in this indicator has historically provided a good bullish signal for the next two years,” the report said.

While Bitcoin and the overall crypto market are trading well below the all-time highs reached in November 2021, the crypto market has witnessed a positive uptrend in the past three months, with BTC rising 50% in the past three months.

On-chain data also shows that “HODLer” stability is high and Reserve Risk for BTC has recently dropped to its lowest level ever.

According to the Bitfinex report, Reserve Risk is a cyclical oscillator that models the ratio between the current price and the confidence of long-term investors. The indicator hovers low when there is heavy investor accumulation and HODLing becomes the preferred market strategy.

The following statements were included in the report:

“As the current price is an incentive to sell, and the level of confidence in this ratio is a set of sub-metrics that take into account the opportunity cost of not selling. The lower the ratio, the higher the confidence investors have.”

*Not investment advice.