Cryptocurrency analysis platform Glassnode released a new analysis highlighting an important level to watch for in the world of Bitcoin.
Glassnode, a well-known organization that provides market information for Bitcoin and other cryptocurrencies, shared an analysis of Bitcoin on its official Twitter account.
The analysis specifically looked at the cost basis and profitability of people who have owned their assets for a short period, defined as less than 155 days.
According to Glassnode, new investors in Bitcoin have a break-even point or “no profit or loss” level at $25,200. This level could potentially act as a support, helping to stabilize Bitcoin prices.
Glassnode suggests that the typical purchase price for Bitcoin among short-term holders is approximately $25,200. This implies that if Bitcoin’s price reaches this level, it would indicate that these investors neither gain nor lose money on their investments. Essentially, their average purchase price would align with the current market price.
To determine the cost base, Glassnode divides the realized capitalization (the total value of coins that have been spent) by the number of coins that have been moved within the past 155 days. This calculation helps determine the average purchase price for short-term Bitcoin holders.
Glassnode tweeted that the average cost basis for short-term Bitcoin holders is around $25.2k, which means it’s the break-even point for recent buyers. They also mentioned that during the March correction, Bitcoin successfully retested the MVRV (Market Value to Realized Value) ratio of 1.0, which is a common occurrence in markets on an upward trend. Glassnode wonders if Bitcoin will reach $25.2k again and find support at that level.
Glassnode mentioned that during the March correction, Bitcoin experienced a successful retest of the MVRV ratio equal to 1.0, which is a common occurrence in markets that are trending upward. The MVRV ratio compares the market value of Bitcoin with its realized value. When the ratio is 1.0, it means that the market cap is equivalent to the realized value, indicating that investors are neither in a profit nor a loss position.
After their analysis, Glassnode posed a question: Will Bitcoin reach the $25.2k mark and find support there?
(Please note that this information is not intended as investment advice).