Bitcoin flashes a profit signal, but only for THESE holders
The Profit Ratio of Bitcoin's [BTC] Spent Outputs for its recent investors has surpassed the crucial threshold of 1, indicating these individuals are currently in a profit position with their holdings.
A fresh analysis by the alias CryptoQuant analyst Phi Deltalytics highlighted the surge of this indicator past 1 as a clear sign of a bullish mood among market players.
This metric gauges if those who've owned Bitcoin between three to six months are cashing out for more than they paid.
A score above 1, like in this case, means these recent holders are, on average, offloading their Bitcoin for a gain. On the flip side, a score below 1 would mean they're incurring losses on their sales.
The Importance of Surpassing the 1 Mark
As revealed by CryptoQuant, the Spent Output Profit Ratio for Bitcoin's short-term holders stood at 1.019 as of the latest data.
Prior to stabilizing at this figure, it had plunged to the brink of 1 but managed to stay above, as uncovered by Deltalytics.
He noted that this level was indicative of a breakeven point for sellers, which demotivated them from selling and contributed to lower selling pressure in the market – a bullish indicator.
He further suggested that maintaining a metric above 1 is crucial. Doing so would mean the market could handle profit-taking activities without triggering a notable dip in price.
Deltalytics proposed that this situation could play a pivotal role in maintaining the momentum of Bitcoin's price surge, expressing:
"Without excessive market heat, this balance is likely to fuel further growth in Bitcoin's price."
Bitcoin's Performance Amid a Rally
In alignment with a broader market upswing in the last day, Bitcoin has seen substantial gains. As of the latest updates, BTC's price stood at $71,212, marking a 6% increase within this timeframe.
This period also saw a marked increase in trading within Bitcoin's derivatives segment, with Coinglass reporting a 112% surge in volume over the day.
With futures open interest for Bitcoin hitting its highest point since March at $35 billion, the momentum appears strong.
