Markets

Bitcoin Bull Market Suspended Due To Cryptocurrency Correction

The influx of capital into the bitcoin markets has turned a large portion of it back into unrealized profits. In addition, the on-chain signals are similar to those in the early stages of a bull market.

In its Week on Chain report on April 24, analytics firm Glassnode expressed more confidence in a return to bullish market sentiment.

Bitcoin price is currently correcting from its 2023 highs which were just under $31,000 on April 14th. However, the asset is still printing a gain of 66% since the start of the year.

The company noted that “the overall market has confidently moved from an unrealized loss regime to an unrealized gain regime.”

He also noted that the amount of USD-denominated profits made this year is still well below the 2021 cycle highs. It is from the same level observed in 2019 when BTC surged from $4,000 to $14,000.

BTC earnings data by Glassnode

Bitcoin gains

Moreover, the a report He noted that total losses remain very low for all major sell-off events during 2021 and 2022. The March 2020 Covid crash, Bitcoin miner migration, Terra/Luna crash, and FTX implosion were all major loss-making events.

The year 2023 has not seen anything close to this scale despite the US regulatory war on cryptocurrencies.

“This suggests that a degree of broad-selling exhaustion has been reached, at least through the lens of large-scale holders who are incurring significant losses,”

The measure of realized capital is the cumulative sum of all realized profit and loss events. This has leveled off massive inflows in 2022 and is going through a potential pivot point, according to Glassnode.

Bitcoin capitalization and potential pivot for bull market data by Glassnode
Bitcoin capitalization and potential pivot for bull market data by Glassnode

On the heels of strong bitcoin price performance this year, a very large cross-section of the market is seeing their holdings recover above the acquisition price. This “creates a more favorable and profitable environment,” the report concluded.

BTC Bulls are not ready to run yet

However, an inevitable correction has begun in the market and prices are starting to fall again. Glassnode stated that this indicates that there is still hesitation among digital asset investors, so there may be some time in the bull market.

“With accumulation and distribution behavior mixed across many portfolio groups right now, the market looks less decisive than it did in the first quarter of the year.”

Bitcoin is currently trading down 1% on the day. As a result, the asset has changed hands at $27,443 at the time of writing.

BTC Price 1 Week - BeInCrypto No bull market yet
BTC Price 1 Week – BeInCrypto

Moreover, it has entered into a limited range channel in the short term for the past 3 days at this price level where there is support.

The next leg down finds more support around $25,000 if the correction deepens.

Disclaimer

In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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