One of the best features about Bitcoin is its transparency. Transactions are verified in real-time and anyone can view them. This especially becomes interesting and fun during times when Bitcoin is approaching all-time highs.
As the Bitcoin price has started its next uptrend surpassing $36,000 and on its way to its previous all-time high earlier this year, over 92% of Bitcoin addresses are in the money according to IntoTheBlock.
While majority of addresses are in the money, only 1.66% of addresses are outside the money.
From our article on aSOPR, we know that generally investors don’t like to sell at a loss in a bull market. This provides greater clarity on how the aSOPR metric plays off of the 1 and why pullbacks to it are healthy in bull markets.
Additionally, we can also get a better idea of time horizon from investors.
Majority of investors that have purchased below $10,260.43 can be viewed as having a longer time horizon for their Bitcoin investment. As we go lower down the price we see that about 9 million addresses have been holding their Bitcoin for years and are likely not willing to sell anytime soon.
Once price hits a new all-time high, 100% of addresses will be in the money until a pullback happens. Keeping an eye on this in addition to aSOPR throughout the bull cycle is a good idea for all investors to see the bigger picture as opposed to daily moves.
*PS I found an awesome resource for Bitcoin with a bunch of important data on one page. Bookmark this bitbo.
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Resources I Use
Binance is the main exchange to trade the crypto markets.
Trading Alpha has built their own indicators that provide buy and sell signals for crypto and equities trading.
I use Tradingview daily to analyze trading charts and find areas of support and resistance.
I learned how to trade through the Bulls on Wall Street program. I’m in this chat everyday giving out my trade ideas.
Nothing in this article is investment advice. I’m not a financial advisor. Do not make investment decisions based on what is in this article or any other article written by BTC News or Blockedia.