Bitcoin has not confirmed an upside consolidation break due to a profit taking wave. Glassnode stated that the market is not yet expecting a significant flow of funds or new users.

On-chain metrics – number of active addresses/users, number of transactions, mempool workload and fees paid – do not confirm an increase in bitcoin investor participation or an expansion of their base.

Most of them are hodling – the number of transactions per day (14-day moving average) corresponds to the values ​​​​of the 2018 bear market.

The slight recovery in network activity confirms continued record low fee revenues. As before, the share of such revenues in the total indicator of miners is just over 1%. This is partly due to the continued transition to more efficient SegWit operations.

Such an environment does not prevent the hashrate from being kept in the all-time high range of 190-215 EH/s. This corridor is 20% higher than the previous historical maximum that was set shortly before the pressure from the Chinese authorities.

Miners earn about $207,000 per EH. This is 40% higher than the 2018 bear market capitulation and 150% higher than it was just after the May 2020 halving.

Short-term investors (with a holding period of no more than 155 days) account for 18.74% of the supply. In the context of its consolidation and subsequent rise in the $33,000-42,000 range, the share of “unprofitable” BTC has dropped significantly to 10.86% of the total number of bitcoins available. According to analysts, this has reduced the likelihood of a panic selling wave.

The amount of daily realized losses decreased from ~20,000 BTC in January to approximately ~8300 BTC, while the amount of profit recorded for the same period increased to 13,300 BTC. Both values ​​are characteristic of bear markets. Experts emphasized that the second indicator is not excessive, but has a limiting effect on prices.

At the end of last week, 58% of all volume-weighted transactions consisted of profit taking. This may signal a change in the dominant mood in the market and the preconditions of oversupply demand. Experts emphasized that this did not happen due to the weak price response.

Recall that Peter Brandt, technical analyst and chairman of Factor LLC, predicted that Bitcoin will return to its bull market phase in May 2024.

Earlier, Galaxy Digital founder Mike Novogratz warned that bitcoin would “rise again” as soon as the Fed ceases to tighten monetary policy.