10/28/2023
According to Cointelegraph: Bitcoin has chalked up notable gains that "pave the way for the resumption of the 2023 upward trajectory," observes the most recent Bitcoin price analysis from on-chain analytics firm Glassnode. After almost 30% growth in October, Glassnode predicts that Bitcoin (BTC) will conclude 2023 on a strong note, the same way it began.
Rolled out on October 24, the latest instalment of Glassnode's weekly newsletter, "The Week On-Chain," argues that the past week has set the groundwork for a potential BTC price rally.
As the price touched $35,200 this week, Bitcoin surpassed several significant trendlines that previously served as sustained support over several months. This range included various moving averages (MAs) like the 200-week simple MA at $28,400 - a traditionally held "bear market" support line.
Glassnode pointed out a cluster of long-term simple moving averages around $28K that resisted the market throughout September and October. "After a month of the market trending higher, bulls amassed sufficient strength this week to make a decisive breakthrough across 111-day, 200-day, and 200-week averages,” wrote Glassnode.
The breakthrough considerably improved profits for numerous investor groups. The Short-Term Holder (STH) average cost basis, synonymous with newer market entrants and speculators, also hovers near the $28,000 mark.
This week's price actions have put the average recent investor's profits at above 20%. As illustrated in Glassnode's STH Market Value to Realized Value (STH-MVRV) ratio chart, even before the October upswing, there were no significant signs of large-scale selling.
In 2021 and 2022, STH-MVRV hit relatively deep corrections of -20% or even more. However, the recent correction, with a low of -10% during the August sell-off, is comparably mild, indicating that the dip garnered solid support and forecasted this week's rally.
As reported by Cointelegraph, the number of STH entities is historically low when compared with their experienced counterparts, the Long-Term Holders (LTHs).