The latest Bitcoin rally shows an impressive performance for the world’s largest crypto asset by market cap as BTC regains the $21,000 price mark after a massive price rally at the start of January. Accordingly, Bitcoin’s 30-day Exponential Moving Average (EMA) of its Supply in Profit shot up to more than 10.5 million BTC.
A Positive Supply In Profit For Bitcoin
As revealed by data from the on-chain analytic firm, Glassnode, Bitcoin’s current Supply in Profit is its highest since September 2022. There are currently 19.27 million BTC in circulation out of 21 million mined.
As a result, Glassnode stated that the Supply of Profit for Bitcoin is positive. The platform added that the supply volume of Bitcoin bought at lower prices usually rises in positive market trends.
According to the crypto analytic firm, the continued increase led to more supply and greater paper profits. In this case, a shift in the macroeconomic trend will impact the volume of Supply in Profit in periods when investors’ cost basis has moved between unrealized profit or loss, said Glassnode.
Furthermore, Glassnode uses Bitcoin’s EMA to arrive at a less volatile forecast for the asset, serving as a better signal for the market upturn. However, an alternative basic calculation of Supply in Profit will likely send a bullish signal to the market.
Glassnode revealed that 69.9% of Bitcoins were in the green on January 19, a 50% rise compared to the beginning of the year. This implies that close to 12.9 million BTC tokens were last transferred when the asset’s value was lower.
Going by Glassnode’s history of Supply in Profit metric, Bitcoin will likely see another recovery under 50% before a more bullish trend occurs.
Multiple Greens For BTC
Other components of Bitcoin’s price are reportedly in the green, which signals the beginning of the end of the 2022 bear market trend. An example is Bitcoin’s latest push which has seen it regain the $21,000 price level from the $17,000 mark towards the end of 2022.
As a result, Bitcoin broke the price resistance by going up north of its 200-day moving average (MA) and realized a price currently sitting at a little under $20,000. Apart from this, the momentum in the number of new Bitcoin addresses also scores another milestone.
Its 30-day simple moving average (SMA) has spiked above the 200-day SMA, showing a shift that often occurs at the beginning of any Bitcoin bull rally. An analysis from the Twitter account with the alias @CryptoHornHairs shows that Bitcoin is moving almost in line with the long-term market turn that appears every four years.
By this, Bitcoin is reportedly at the start of a bullish momentum following a 364-day downtrend. Meanwhile, the growing demand for Bitcoin transaction activity could lead to a sustained uptick in fee revenue and aid Bitcoin’s price surge.
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