Bitcoin Surges to $66k: New Higher High Signals Market Shift

• Bitcoin surges to $66k, marking a new technical higher high and signaling potential bullish momentum across the market.
• Both long-term and short-term Bitcoin holders see profitability rise, suggesting reduced financial pressure and market recovery.
• US Spot ETFs now manage $58B in Bitcoin, holding 4.6% of the supply, reflecting strong institutional confidence and market influence.

Bitcoin has made a notable leap, reaching $66k for the first time since its all-time high (ATH). This move sets a new technical higher high, marking a moment for cryptocurrency. Furthermore, several key on-chain metrics are also recording higher highs, strengthening the bullish outlook.

Besides, a rise in long-term holders (LTH) holding Bitcoin in loss shows signs of market recovery as investors are not facing major financial stress. Additionally, short-term holders (STH) are seeing profitability rise, signaling improving market conditions.

For the first time since the ATH, #Bitcoin has established a new technical higher high, as price bounced into the $66k region.

Alongside this, there is a multitude of critical on-chain metrics that have also set higher highs, making this an interesting moment in time.

Discover… pic.twitter.com/AeOruDoPqo

— glassnode (@glassnode) October 2, 2024

Long-Term and Short-Term Holders Show Signs of Recovery

Additionally, the present cycle of the price of Bitcoin exhibits striking similarities in recovery behaviors with prior cycles from 2015, 2019, and 2023. HODLing is still the most common type of investment activity, and the price swings suggest that Bitcoin may be entering a new accumulation period. Additionally, long-term holders are maintaining their positions despite unrealized losses from the $73k ATH period.

Short-term holders, on the other hand, have shown clear improvement in profitability. Over 62% of STH coins are now in profit, a positive sign that financial pressure is easing. Moreover, STH realized profit has rebounded strongly, indicating a more favorable market environment compared to previous weeks.

Institutional Confidence in Bitcoin Grows Through ETFs

ETF investors are also maintaining a strong position, with total assets under management in US Spot ETFs reaching $58 billion. These ETFs hold 4.6% of Bitcoin’s circulating supply, with acquisition costs ranging from $54.9k to $59.1k. Despite some sell-side pressure, ETF investors remain confident.
Bitcoin’s market dynamics suggest a growing shift, with both long-term and short-term holders benefiting from the rally. The market is showing signs of entering a more profitable phase, supported by key on-chain metrics. This resurgence in profitability, coupled with institutional confidence in ETFs, points to a potentially significant change in market structure. Consequently, the coming months could offer substantial opportunities for both individual and institutional investors.

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