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Historical Data Provides Insights into Bitcoin’s Future: CryptoQuant Report

In the world of cryptocurrency, Bitcoin is undoubtedly the king. Its value has been the subject of much speculation and interest from investors all over the world. Recently, there has been news that Bitcoin still has a long way to go before it reaches its next bull run, according to data by CryptoQuant.

The report suggests that the value in the pockets of short-term holders is more profitable near the price bottom, and the need for continued price growth of Bitcoin depends on the behavior of these players and their profitability process. In other words, understanding how much value Bitcoin holders hold based on the realized price is one of the best and most valuable ways to determine their behavior.

The report indicates that long-term holders usually hold their coins for a long time and tolerate more loss. Bitcoin profit days often begin with the short-term holder’s profitability, and the more the profit in the pockets of these holders increases, the more interested they will be in keeping their coins and the less pressure to sell.

Source: CryptoQuant

According to the metric and description above, when the 1m-6m age band realized price passes the 6m-12m age bands, new BTC investors have more value in their pocket and more profit. This indicates that short-term holders are more valuable at present.

However, the report notes that the situation is different now, and more new investors are needed to cause more value in the short-term holders’ pockets to create a more long-term attitude in short-term holders and convert them into long-term ones. For these reasons, the process of the BTC bull run can be time-consuming.

The report draws on previous Bitcoin price cycles in 2015-2016 and 2018-2019, where the 1m-6m age bands’ realized price value passed the 6m-12m age bands realized price. After the pre-bull run price correction, the bull run began. While the situation now is different, this historical data provides valuable insights into how the market might move in the future.

In conclusion, the report by CryptoQuant suggests that Bitcoin still has a long way to go before its next bull run. Short-term holders play a crucial role in the profitability of Bitcoin, and more new investors are needed to create a more long-term attitude among these holders. While the process may be time-consuming, past Bitcoin price cycles provide some insights into how the market may behave in the future. As always, investors should exercise caution and do their due diligence before making any investment decisions.

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