The price of Bitcoin continues to rise today: hodler in profit by 120% in USD

A recent research confirms that the bullish trend of the price of Bitcoin in USD remains “intact” even today, with the “hodlers” recording a profit of 120%.

Despite an unfavorable climate, hodlers are not engaging in a mass distribution, even though the recent drop in BTC price has eroded some of the unrealized profits. 

This scenario indicates a continued confidence and a long-term commitment in the world’s most famous crypto. Let’s see all the details below. 

Profits in USD of Bitcoin hodlers stable today, despite the recent price drop

As anticipated, according to new research, Bitcoin remains “largely profitable” despite months of sideways BTC price action. 

In the latest edition of its weekly newsletter, “The Week On-Chain”, published on June 18, the analytics company Glassnode debunked the myths about investors’ unrealized losses, highlighting that Bitcoin’s bull trend is still intact.

Bitcoin (BTC) could be traded within a tight corridor, but most hodlers do not see the return on investment evaporating.

Summarizing the current price behavior of BTC as “establishing equilibrium,” Glassnode pointed out several on-chain metrics that show Bitcoin in a period of consolidation, not capitulation.

“The lateral movement of prices tends to manifest as boredom and apathy among investors, which seems to be the dominant response in all Bitcoin markets,” wrote the company.

Using the Market Value to Realized Value (MVRV) metric, Glassnode researchers have demonstrated that, in aggregate, a certain amount of BTC has still increased by more than double, or 120%, compared to its purchase price in US dollars. 

The average annual value of MVRV is currently 86%. “The MVRV ratio remains above its annual baseline, suggesting that the macro bull trend remains intact,” added the accompanying commentary.

Support of short-term hodlers

Despite the drop in BTC price this week, which has raised fears among traders about the possible disintegration of support trendlines, short-term hodlers (STH) are not planning a mass sell-off at current prices. 

The latest data from the statistical resource Look Into Bitcoin place the STH cost basis at 64,000 USD. Glassnode observed that short-term holders are currently sending around +17.4k BTC per day to exchanges. 

A significantly lower number compared to the peak of +55k BTC/day recorded when the market reached the 73k USD ATH in March.

Despite the recent volatility, Glassnode’s research offers a positive outlook for the future of Bitcoin, highlighting that the majority of hodlers continue to record significant profits. 

This scenario indicates a continued confidence and a long-term commitment in the world’s most famous cryptocurrency, with a bull trend that, according to on-chain metrics, remains intact.

Credible on Bitcoin: possibility of reversal with failed swing pattern

The pseudonymous analyst Credible shared with his followers on the social media platform that Bitcoin might have just witnessed a swing failure pattern (SFP) on the lower time frame after bouncing from 64,000 USD.

Gli SFP (Swing Failure Patterns) sono spesso ricercati dai trader come potenziali punti di inversione. Credible ha dichiarato: 

“There is a possibility that our BTC bottom is on the way with this SFP. Below is what I am watching for now. Yes, technically we can still go down into the ‘dream long’ zone below, but as I said before it wouldn’t surprise me to see that zone ahead.” 

Looking at the trader’s chart, it seems to suggest that Bitcoin will confirm a bottom if it rises above 68,000 USD.

Credible adds that both spot data and derivatives data look good for BTC: 

“The spot premium is back with a vengeance, with funding literally turning negative for the first time in months and BTC still cooling above the ‘best’ long area at 62,000-63,000 USD. There is no doubt in my mind that we are forming a bottom above 60,000 USD, I just need to be a bit patient.” 

However, Credible warns that if the support at 65,000 USD does not hold, the last line of defense for BTC bulls is at the lows of the range that have held for months.