Since reaching the all-time high of $73,800 in March, Bitcoin has been in trouble, but according to Glassnode, the uptrend is still intact. Bitcoin is still “largely profitable” despite months of sideways price action, according to research from on-chain analytics firm Glassnode.

Majority of investors insist on profit

The majority of Bitcoin investors are still sitting on a virtual profit, according to Glassnode analysts. Currently, according to Glassnode, Bitcoin is looking for a position of equilibrium.

According to Glassnode, several indicators indicate that Bitcoin is in a period of consolidation and not in a period of capitulation.

“Sideways price action generally shows up when investors are bored and apathetic, which seems to be the dominant reaction in the Bitcoin market right now,” Glassnode analysts said.

So far, 87% of the supply in circulation is still at a virtual profit, according to Glassnode analysts.

Purely based on on-chain analysis

Please note that Glassnode only has access to data from the blockchain. They are not talking about Bitcoin, which may have been on the exchanges for years – which are virtually in the green on the blockchain – but may have been last sold on the exchange in question above the current price of $65,000.

It is therefore possible that a larger part of the supply is in the red at the moment. That is also the major shortcoming of on-chain analysis, that you cannot include all Bitcoin. You simply cannot follow the trading that takes place on the exchange platforms with on-chain analysis.

Based on the Market Value to Realized Value (MVRV) ratio, an average Bitcoin stands for a gain of 120% on the blockchain; measured in US dollars.

These are still excellent results. However, we now have to wait for the next price explosion of Bitcoin, which, according to Glassnode analysts, is still in the pipeline.

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