Bitcoin Monthly Stats: Cost Basis, Long-Term Holders, And The Cyclical Bottom
in this month bitcoin monthly, ARK Invest focused on Ethereum and Merge. As a side dish, they published some premium and reviewable stats that we’re about to cover. Regardless of the market, the bitcoin network keeps on producing block after block. However, the data that this entire activity generates can be important in understanding the market.
Related Reading: WATCH: Waiting For Bitcoin Monthly: Will The Crypto Sink Or Climb? BTCUSD August 31, 2022
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That’s where ARK Invest’s The Bitcoin Monthly comes in. The publication defines itself as an “earnings report” that details on-chain activity and demonstrates the openness, transparency and accessibility of blockchain data. Therefore, the data we are about to cover is the reason why bitcoin is monthly.
Bitcoin Monthly: 200-Week Moving Average and Investor Cost Basis
- “After closing above its 200-week moving average in July, the price of 1 bitcoin reversed and dropped below it in August. Currently at $22,680, the 200-week moving average now appears to be resistance.”
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Couldn’t hold the center. The price recovery was short-lived. The markets are in the red and bitcoin is no exception. At the time of writing, bitcoin is trading at $19,874. For those keeping score, this is just below the all-time high of $20K from the previous cycle. Something that shouldn’t happen, but some degree of error is always understandable.
- “Bitcoin currently trades on an investor cost basis at $19,360, its strongest on-chain support level (…).
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Times are tough, but bitcoin is still trading on an investor cost basis. Bitcoin Monthly clarifies, “Investor value is calculated by subtracting the cost basis of the miners from the general cost basis of the market.” As we see, bitcoin is calling for a monthly bottom. He didn’t say it in those exact words, but he certainly underlined it.
What’s really down there, though?
BTC price chart for 09/17/2022 on Gemini | Source: BTC/USD on TradingView.com
Bitcoin Monthly: Short-Term Holder Vs. long term holder
- “Short-term holder (STH) cost base is approaching its long-term holder (LTH) cost base – a phenomenon that has marked cyclical bottoms in the past. (…) since the end of July, short and long term The difference between the holders’ cost base has been reduced from $5,840 to $2,500.”
Bitcoin Monthly sees this as a sign that “the market is generally capitulating and getting back into long-term participation.” Bitcoin’s consolidation process could end soon. However, we may stay in the lower zone for a while. This has happened before. The point is that all the indicators Bitcoin Monthly pointed in the same direction this month. Below
- “The supply held by long-term bitcoin holders is 34,500 coins far from reaching 13.55 million – an all-time high. Long-term holder supply is 70.6% of the total outstanding supply.
It is the fastest among all the selected figures. To clarify, coins that haven’t run out in 155 days or more qualify as “long-term holder supplies.” Tourists and people with high hopes left long ago. And the lion’s share of the bitcoin supply is now held by true believers. A remarkable condition that is not mentioned enough.
Related Reading: Bitcoin dominance hits all-time low as merger draws near
About Ethereum Merge
- “In August, Ether outperformed Bitcoin by 7.6% (…). Historically, Ether has outperformed Bitcoin during “risky” bull markets and during “risk-off” bear markets. Underperformed.”
The effects of the merge engulfed the market throughout the narrative. ETH took over and led the market for some time, even though we are in a “risk-off bear market”. He achieved the legendary feat and… the market stormed in on him. It seemed that after the mission was completed, the price of ETH started bleeding.
Hidden behind a secret door, that’s what Bitcoin Monthly is all about.
Featured Image by Maxim Hopman on Unsplash | Charts by TradingView