Bitcoin Enters “Hodlers’ Sweet Spot,” Relative Unrealized Profit Points to “Plenty of Room to Grow”

Bitcoin has been having a wild day, having hit $15,300 today with the volume going to $4.3 billion.

The fall in the USD index to May 2018 level also pushes BTC higher, just like gold, which is near $1,950.

For the leading digital asset, there isn’t much resistance standing between here and the all-time high of $20,000.

As one trader noted, “that was the last major resistance until ATH,” while another adds to the hopium with “BTC 20K now doable in 2020. 25K-30K in 2021, all possible.”

Such a beautiful thing right here.#Bitcoin strong breakout out of that double resistance we've been watching, snapping the upward channel and obliterating psychological resistance in one fell swoop.

Charts don't get much more bullish than that. pic.twitter.com/xAlNoVV9xp

— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) November 5, 2020

According to the world's largest money manager BlackRock as well, crypto is a useful addition to a balanced portfolio besides cash, emerging markets, and some risky assets that offer an effective hedge today.

And there’s still “plenty of room to grow” based on Bitcoin’s relative unrealized profit despite the digital asset already being up more than 107% YTD.

During the previous cycles, the global tops were hit when the metric had a reading of 0.8. Last year’s local top at $13,900 was hit at 0.64. This time, currently, BTC is at around $15,250 and the metric has only a reading of 0.53.

Source: Glassnode

Strong Fundamentals

With the latest jump in price, near-record addresses are active on the Bitcoin network.

Yesterday, a total of 1.17 million addresses were active, and there have been only nine days in BTC’s entire history when the network saw more activity.

Only 600 addresses were short of hitting the record set on December 17, 2017, when Bitcoin made an all-time high.

When it comes to other fundamentals, over 64% of Bitcoin addresses holding BTC for over a year, up 20.6% over the last 12 months. Also, the number of BTC addresses with a balance managed to increase by 15.9% throughout the last 33 months at 33.03 million, as per IntoTheBlock.

Now enterring what is called the "moment of realization" for #Bitcoin.

Let's give some credit to @100trillionUSD here.

I like this model that picked top in late '17 and most importantly bottom in early '19.

We are now in what I call the hodlers' sweet spot.

Get paid to sit. pic.twitter.com/DLyEe30l5t

— Dan Tapiero (@DTAPCAP) November 5, 2020

Since January 2018, when we last hit the price that BTC is currently at, the hash rate of the network actually increased by 744%, demonstrating “the value miners see in Bitcoin, but also the value Bitcoin obtains from its miners.”

The Bitcoin hash rate, which dropped for the past couple of weeks, going under 100 Th/s due to the rainy season being over in China and many miners switching off and seeking new hosting facilities which are now seeing a 25% increase in revenue, is also back at 128 Th/s.

This happened after Bitcoin had the second biggest negative difficulty adjustment this week, which was nine years after the biggest one in October 2011.

With this, the unconfirmed transactions were also down at 30k from the high of 150k last week. Naturally, the average bitcoin transaction fees are around $8, which surged above $13.

Bitcoin (BTC) Live Price