Bitcoin's surge to a three-year high leaves 99.17% of holders in profit. Analysts note significant support levels amidst bullish indicators.
The recent surge in Bitcoin's value to a three-year high has brought substantial profits to its investors, with an impressive 99.17% of holders currently sitting on profits, according to data from IntoTheBlock.
IntoTheBlock's on-chain data analytics platform reveals that this percentage represents 51.45 million of all addresses holding the leading cryptocurrency. With Bitcoin's current value sitting at $63,215, none of its holders are currently experiencing losses.
Despite some profit-taking activity, this situation is bullish for Bitcoin, as there is a general decline in selling pressure from holders aiming to break even on their positions.
Analyst Ali_Charts, in a recent post on X (formerly Twitter), highlighted the potential for a rally above the current price mark, noting a major "support wall" for Bitcoin between $54,300 and $56,200.
This indicates that many addresses (903,540) accumulated Bitcoin within this price range, forming a "support wall" that could prevent significant price drops if approached.
Ali further revealed that these addresses collectively held nearly 500,000 BTC, underscoring the significant support for Bitcoin within the $54,300 and $56,200 range, with no apparent resistance ahead.
AMBCrypto discovered that Bitcoin's rally above $63,000 on February 28th caused its daily ratio of transaction volume in profit to loss to reach its highest level in four years.
According to Santiment data, this ratio stood at 4.91, indicating that for every BTC transaction resulting in a loss that day, 4.91 transactions ended in profit.
The last time this ratio was this high was on December 17, 2020.
In a similar vein, Bitcoin's Market Value to Realized Value (MVRV) ratio hit a three-year high of 171.95% at the time of writing.
The MVRV Ratio is a metric used to evaluate whether an asset is overvalued or undervalued relative to its historical price movements.
This indicates that most Bitcoin holders stand to make an average profit of 172% on their investments if they were to sell their BTC at the current market value.