The recent surge in Bitcoin’s price saw it shoot up by over 12%, reaching $35,000. This surge also means that MicroStrategy, a prominent company that holds approximately $44 billion worth of Bitcoin, is now in a profitable position.
Market analysts are suggesting that this significant price increase could be the start of the next Bitcoin bull run, setting the stage for the cryptocurrency’s potential growth leading up to the next halving event in mid-2024.
80% of Bitcoin Holders in Profit, Yet Profit Booking Risks Loom
Recent on-chain data indicates that nearly 80% of Bitcoin holders are currently in a profitable position. This percentage, not seen since the peak of the 2021 bull market, raises concerns about potential profit booking in the near future.
Moreover, data from IntoTheBlock suggests that there are no significant on-chain resistance levels as Bitcoin approaches $40,000, with the $30,000 level likely to provide strong support in case of a pullback.
Another noteworthy trend is the 27% increase in the amount of Bitcoin held by short-term traders over the last 30 days, a common occurrence during bullish phases. Both short-term traders and newcomers are actively acquiring Bitcoin as its value continues to climb.
Courtesy: IntoTheBlock
MicroStrategy, the largest corporate holder of Bitcoin, has now seen its Bitcoin holdings become profitable as the price surged past $30,000. With the recent rally, MicroStrategy is now enjoying a 10% profit on its $4 billion worth of Bitcoin holdings.
MicroStrategy’s Bitcoins holding is back in the green.
That’s the third time this year.
After being down as much as -50%, Michael Saylor must be feeling pretty good about that.
Regardless MSTR owns $4 billion worth of BTC and they are positioned to win big during the next bull… pic.twitter.com/0glmmNcAXj
— ecoinometrics (@ecoinometrics) October 23, 2023
Eyes Resistance at $38,440 and $47,360
Bitcoin (BTC) has established robust support in the price range between $25,000 and $30,000. The UTXO Realized Price Distribution (URPD) model suggests that BTC is likely to encounter significant resistance at the upcoming key levels of $38,440 and $47,360.
#Bitcoin built a massive support barrier between $25,000 and $30,000. The UTXO Realized Price Distribution (URPD) model now suggests the next two critical areas of resistance for $BTC are $38,440 and $47,360! pic.twitter.com/tdgdYYiMnW
— Ali (@ali_charts) October 24, 2023
Bitcoin Critic Warns of FOMO Rally and Potential Price Corrections
A well-known Bitcoin critic, Whalewire, has described the recent rally in Bitcoin as a “Fear of Missing Out” (FOMO) driven by retail investors. The analyst pointed out that in previous bear market cycles, Bitcoin has experienced significant surges of over 200% before eventually declining to new lows.
Whalewire suggests that the current rally may be another deceptive upswing, likely fueled by the excitement around ETFs, with the intention of attracting more participants before the next major downturn. The analyst also highlights the significant increase in newly created Tether tokens over the past week.
Whalewire’s advice to its followers is to consider taking profits or adopting a cautious approach by waiting on the sidelines for the time being.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News