By Hassan Mehmood (Saudi Arabia)
The crypto market is definitely turning all the right corners recently, and that is why it is an unusual situation; and according to some analysts, it is probably a little bit concerning too. According to the on-chain data prepared by Glassnode, it seems that about 95% of the crypto market is in profit. In recent events, Bitcoin has managed to secure the $55K price support, and its value continues to increase by the hour. Since that the overall profitable elements within the crypto market are now on the rise, and this increase has been brought into the notion of a percentage which is 16%.
There is an indicator created by the Glassnode studios, which is known as the percentage of entities that are in profit indicator. The indicator has been programmed very carefully, and it can depict the overall percentage of entities present on the network which are currently trading at a profit. Usually, the buy price is determined to analyze whether a dedicated entity or commodity is actually going in profit or not.
Also read:This buy price is actually the very price of a cryptocurrency during the time when it was moved into the wallet of an investor, and then this estimated price is compared with the current price of Bitcoin. When the crypto market showed some promise back in 2020, the profit indicator for Bitcoin was soaring high. Investors are still trying to determine whether the crypto market at the moment is oversold or overbought. There are various indicators that can be used by crypto traders to determine that, such as the relative strength index or on-chain data, which is being discussed by the Glassnode studios.
Possibility Of Sell-off
It goes without saying that whenever the market is in profit, investors will try to chip in their stash of crypto to turn in some major profit. Last time when the market was at 95%, about 50% of the investors hooked up with the sell-off, and that is why it concerns this time. If a sell-off takes place at a significant stride, then there might be turmoil and instability within the crypto market.
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