The blockchain intelligence firm Glassnode says a key Bitcoin indicator suggests the crypto market remains in the early days of a long-term bull run.
According to Glassnode, the number of BTC addresses with unrealized profit is at similar levels to the start of three major rallies.
Unrealized profit is calculated by taking the difference between the current price of Bitcoin and the price at the time that BTC in a given address last moved. It’s a sign of how many traders are determined to hold on to their investment.
Meanwhile, Bitcoin’s hash rate is hitting new all-time highs.
The hash rate is a mathematical representation of the amount of computing power dedicated to processing Bitcoin transactions. The higher the number, the stronger and more secure the network.
The high water mark suggests miners that power the leading cryptocurrency are feeling bullish on their ability to turn a profit by powering the network.
— Binance Research (@BinanceResearch) March 2, 2020
Bitcoin is currently up 4.25% at $8,914, according to CoinMarketCap at time of publishing.
Despite the relief rally, a pseudonymous analyst who goes by the name The Cryptomist tells her 44,000 followers on Twitter that Bitcoin bulls are not out of the woods yet.
In the short term, she’s expecting BTC to cross the $9,000 mark before once again shifting to the downside.
According to the analyst, bulls now need to prove they can successfully break above resistance at $9,150.
“Ground found from the region which was mentioned in previous btc post few days ago.
For me right now, there is no reason to assume this is not a lower high at the moment. I am looking for us to go towards $9,150 region before potential drop for new lows.”
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