Several on-chain metrics for Bitcoin have been entering bullish territory as the asset remains above $13k for the fourth straight day.
Bitcoin has held on to gains it made last week, remaining above the $13k barrier for the past four days. It has not revisited that 2020 high of $13,350 made on Sunday, but is not far below it trading at $13,100 at the time of writing.
On-chain analytics provider Glassnode has been digging into the charts noting that the number of accounts with over $1 million in BTC has crossed the 20,000 level and is at its highest level since January 2018.
It is the highest value since January 2018.
— glassnode (@glassnode) October 26, 2020
The chart pattern is uncannily similar to the Bitcoin price chart indicating that many of these whale accounts are simply hodling, as the number has reached the milestone along with a 16 month price peak.
The stats also revealed that the population of whale entities, defined as clusters of addresses held by a single network participant holding at least 1,000 BTC, was 1,939, the highest level since September 2016.
Unfolded added to the narrative stating that Bitcoin addresses with balance ≥ 1,000 BTC has hit a new all-time high.
Net Unrealized Profit/Loss Up
Another metric called Net Unrealized Profit/Loss (NUPL) is back in the ‘belief’ zone according to Glassnode which added that over 50% of the BTC market cap consists of unrealized profits, a level not seen since August 2019.
#Bitcoin investor sentiment: Net Unrealized Profit/Loss (NUPL) has been in the "Belief" zone for the past week.
Currently, over 50% of the $BTC market cap consists of unrealized profits – a level not seen since August 2019.
— glassnode (@glassnode) October 27, 2020
The metric briefly entered this zone last in mid-2019 which coincided with its rally then, taking prices up to their highest since ATH at $13,800. This is the current target to beat according to analysts as it forms a new higher high and confirms the bull market.
Periods of capitulation using the NUPL metric have only occurred four times, at the end of 2011, for most of 2015, the latter half of 2018, and very briefly in March this year when global markets crashed on the Coronavirus pandemic.
NUPL looks at the difference between Unrealized Profit and Unrealized Loss to determine whether the network as a whole is currently in a state of profit or loss.
Bitcoin Price Outlook
Since its 2020 high over the weekend, Bitcoin has spent the past 48 hours consolidating in the $13,100 range.
The bulls need to take charge soon to push higher towards the next level of resistance to prevent the asset from falling back to support which currently lies at around $12,750.