On-chain data provider, Glassnode, has revealed that 95% of the crypto market is currently in the green. This comes on the heels of a recent surge in the price of Bitcoin. The flagship cryptocurrency had moved beyond $55k increasing the number of profitable entities by 16%, Glassnode revealed.
Glassnode uses this indicator to determine the percentage of entities that are currently holding their crypto assets in profit. The on-chain data provider arrives at this percentage by calculating the ‘buy price’ at which the assets were bought before they were transferred into wallets and compares with the actual price of Bitcoin. Through this, Glassnode can ascertain whether the entities are in profit or not.
Percentages of Entities in Profit Hit All-time High in May
Back in May, the percentage of entities in profit was at an all-time high. This was amid a bull run that was eventually short-lived in the middle of May. At the time, Bitcoin’s price had collapsed to $35k which was a 50% decline in its price. It reached an all-time high of $65k earlier in May. The mid-May decline followed a sell-off from most investors. However, the number of profitable Bitcoin addresses began increasing as the crypto market steadily recovered.
However, there are fears that a sell-off will soon follow since market peaks are preceded by selling pressure. Experienced traders adopt some tools to determine when the market is overbought or oversold. This helps them make trading decisions from an informed standpoint. Traders use indicators such as the Relative Strength Index (RSI), Stochastic Oscillator and a host of others.
Traders Prepare to Sell Off as Market Reaches Peak
Now that the crypto market is 95% up and the percentage of entities in profit is at 16%, the number of traders looking forward to selling off has increased as well. If entities currently holding Bitcoin in their wallets begin to offload a portion of their holdings, Bitcoin may likely lose some of the gains it has accumulated over the last few days. Bitcoin has maintained its dominance over altcoins, most of which have to register gains like Bitcoin.
Bitcoin is currently trading above the $54k region after losing 2% off of its price on Wednesday. The recent performance by Bitcoin sparked speculations of the much-anticipated uptrend that will see Bitcoin rise to $100k. Since Bitcoin failed to carry altcoins along, there are reasons to believe that this may not be the highly talked about uptrend. With two months left for the year to end, the crypto market has enough time to create new peaks.