Glassnode, a popular organization for on-chain market information for Bitcoin and other cryptocurrencies, posted a Bitcoin analysis on its official Twitter account.
The analysis focused on the cost basis and profitability of short-term asset holders, defined as those who have held their coins for less than 155 days.
Glassnode: "No Profit or Loss Level of New Investors in Bitcoin is $25,200, This Level Can Play a Support Role"
According to Glassnode, the cost base for short-term Bitcoin holders hovers around $25,200, meaning neither a profit nor a loss point for new purchasers. If this level is reached, it will appear that the average price at which these investors bought their coins is equal to the current market price.
The cost base is calculated by dividing the realized capitalization by the number of coins moved in the last 155 days.
The cost basis for #Bitcoin Short-Term Holders is hovering around $25.2k, representing break-even for recent buyers.
A successful retest of MVRV = 1.0 was achieved in the March correction, typical of uptrending markets.
Will #Bitcoin reach $25.2k, and find support this round? pic.twitter.com/koax7gq9nd
— glassnode (@glassnode) May 12, 2023
Glassnode also noted a successful retest of MVRV = 1.0 in the March correction, which is typical for markets in an uptrend.
MVRV stands for market value divided by the realized value ratio and measures the relationship between Bitcoin's market value and its realized value. A value of 1.0 indicates that the market cap is equal to the realized value, which means that all coins are neither in profit nor in loss.
Glassnode analysis then raised a question: Will Bitcoin reach $25.2k and find support at this level?
*Not investment advice.
