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Here’s what to expect after bitcoin rises by 23% in 2023!

bitcoin rises by 23%

Bitcoin’s overall price began rising by 23%, resulting in a wide range of investors and miners returning to their investments and operations.

In a new report published by Glassnode, entitled:

Is Bitcoin back?

Glassnode provided some metrics on the chain to determine the meaning behind last week’s price rise and the factors behind it.

Glassnode analyzed Bitcoin’s simple 200-day moving average (200D-SMA) to confirm whether sentiment in the market last week was bullish or downward.

What does metrics and data reveal?

The 200-day SMA scale has often been used as a benchmark to determine macroeconomic trends across all kinds of cryptocurrencies.

Comparing the price of bitcoin with the simple 200-day moving average, investors and traders alike can determine whether the market is on an upside or downward trend.

As prices rose last week, Glassnode found that the price of bitcoin exceeded the psychological level of $19,500.

It also added that the bitcoin market was exposed to a consistent pattern of cycles, with the current cycle trading below 200D-SMA for 381 days, just under 386 days for the bear market in 2018-2019.

Should bitcoin price penetrate the 200D simple moving average, analysts may expect the price to rise as it happened in 2019 and 2021.

Glassnode also noted that the recent price rise had caused bitcoin to exceed its realized value, indicating that bitcoin owners in the medium term had made an unrealized net profit in the past week.

For context, the current bear market lasted 179 days below the realized price, making it the second-longest bearish market of the past four cycles.

Bitcoin data aSOPR:

A look at bitcoin’s expended adjusted production profit ratio (aSOPR) revealed that the scale would have retested the value of 1.0 from below.

Bitcoin ASOPR is a metric that is used to measure the profitability of bitcoin transactions by comparing the revenue generated by the transaction with the cost of creating bitcoin.

According to Glassnode:

The higher aSOPR penetration, and the perfectly successful retest of 1.0, often indicate a meaningful shift in course, where profits are made, and there are sufficient demand flows to accommodate them.

When the 30-day moving average of aSOPR exceeds 1.0, transactions become more profitable more broadly, usually indicating a generally strong market.

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