Bitcoin broke the historical capitalization maximum

The total value invested in Bitcoin, measured through the capitalization made, reached a new historical maximum of USD 882,228 million.

Unlike traditional market capitalization – which is calculated by multiplying BTC’s total offer for its current price – the capitalization made uses a different approach. This metric ON-CHAIN Value each Bitcoin unit according to the value to which it was last transferred on the network. To do this, add the value of each UTXO (outstanding output) considering its last movement date.

This approach allows to estimate more precision how much capital has really been invested by market participants. By filtering the effect of lost currencies or that have not moved for a long time, the capitalization carried out offers a more stable vision of the cumulative behavior of BTC investors and the general feeling of the market.

According to the Spanish analyst Carmelo Alemán, the new capitalization record made reflects a renewed optimism: “There is great confidence in the asset.” In addition, it emphasizes that the strong growth of this metric, which can be seen below, has historically preceded the price increase.

“Large capitalization accumulations have been mainly followed by considerable increases in the price of Bitcoin,” he explains. In that sense, consider that The current scenario points to a possible bullish continuation.

The behavior of the price of Bitcoin and its capitalization made in recent years can be seen in the following graph.

“It is very likely to see an explosive rise from BTC,” says German

Although, as Cryptonoticias reported, Bitcoin has experienced a rebound in the last three weeks since April 9, has not had an outdated increase. However, “if these accumulations persist, we are very likely to see an explosive climb,” says German.

The price of Bitcoin today reached the USD 96,000its maximum in two months. With this, it was 10% below its historical maximum of USD 109,000 registered three months ago, as the following graph exhibits.

“We will continue to closely monitor the evolution of this metric, since it could point out the beginning of the next great Bitcoin market movement,” concludes the analyst on the capitalization carried out.

More than 85% of the BTC supply is in profits

Along with this panorama, another relevant indicator also moves in positive terrain: the percentage of bitcoin currencies in profits (that is bought at a lower price than the current one) exceeded 85%.

“This is quite positive,” says the analyst known as Darkfost, since this behavior helps to strengthen confidence in the asset and could even give way to a phase of euphoria, a phenomenon historically linked to strong price increases.

When the gain supply exceeds 90%, euphoric periods that push the rise price are usually triggered. Although, Darkfost warns that these types of phases can be of short duration and be followed by corrections in the short or medium term, as the next graph exhibits.

During the last correction at the beginning of April, the percentage of currencies in profits fell to about 75%, a level considered critical from the historical perspective. “Falling below that threshold could trigger more profits or even causing a capitulation event,” warns the specialist.

In past cycles, the lowest levels of the gain supply ranged between 45% and 50%, coinciding with deep bearish stages of the market.

For this reason, the current rebound in profits above 85% represents an additional sign of recovery and strength In the Bitcoin market.