{"id":435461,"date":"2020-08-19T02:00:14","date_gmt":"2020-08-19T02:00:14","guid":{"rendered":"https:\/\/wncen.com\/?p=435461"},"modified":"2024-06-11T14:15:16","modified_gmt":"2024-06-11T14:15:16","slug":"bitcoin-investor-profitability-shows-theres-room-for-major-upside","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-investor-profitability-shows-theres-room-for-major-upside\/","title":{"rendered":"Bitcoin Investor Profitability Shows There\u2019s Room for Major Upside"},"content":{"rendered":"
Bitcoin\u2019s mounting fundamental strength has been forming a compelling case that upside may be imminent for the cryptocurrency.<\/p>\n
This underlying strength can be seen on multiple fronts, with the cryptocurrency\u2019s market health growing due to spikes in the asset\u2019s liquidity as well as its investor sentiment.<\/p>\n
One on-chain indicator that examines the profitability of Bitcoin investors is now signaling that the benchmark digital asset may have significant room for growth in the near-term.<\/p>\n
The last time BTC\u2019s price<\/a> hit $12,000, this indicator\u2019s value was significantly lower than it is presently, which is a positive sign leading one research firm to note that its mid-term outlook remains bright.<\/p>\n Bitcoin\u2019s recent price action has firmly favored bulls<\/a>, although it has seen some weakness today due to the influx of selling pressure that briefly sent it below its key near-term support at $12,000.<\/p>\n Analysts are now widely noting that the crypto could be well-positioned to see further near-term upside due to its ability to hold above this level.<\/p>\n It is important to keep in mind that there is more than just technical strength bolstering the crypto\u2019s short-term outlook.<\/p>\n According to a report from the analytics platform Glassnode, Bitcoin\u2019s market health has been trending upwards in recent weeks.<\/p>\n Last week, they explained<\/a> that an increase in liquidity and investor sentiment boosted the \u201cGlassnode Network Index\u201d score \u2013 signaling that BTC\u2019s market health is growing in tandem with its price.<\/p>\n \u201cBitcoin on-chain fundamentals saw a slight increase during Week 33. GNI gained 2 points, bringing it back above 70. This was caused by increases in the Liquidity and Sentiment subindices.\u201d<\/p><\/blockquote>\n <\/p>\n In addition to being backed by strong market health, the current profitability of investors also is favoring bulls.<\/p>\n While pointing to Bitcoin\u2019s \u201cNet Unrealized Profit\/Loss\u201d indicator, Glassnode said<\/a> that the last time the crypto was above $12,000, this metric was sitting at a much higher level than it is currently.<\/p>\n This shows that the ongoing rally may prove to be far more sustainable than that seen last summer.<\/p>\n \u201cNet Unrealized Profit\/Loss (NUPL) broke in to the “Belief” zone for the first time over a year. Its current value is lower than the last time $BTC hit $12,000 \u2013 suggesting potential for more price upside from here.<\/p><\/blockquote>\n <\/p>\nBitcoin Incurs Mounting Fundamental Strength as Price Holds Above $12,000<\/strong><\/h2>\n
Image Courtesy of Glassnode.<\/pre>\n
This On-Chain Indicator Shows BTC has Room to Rally<\/strong><\/h2>\n
Image Courtesy of Glassnode.<\/pre>\n