Bitcoin Surges Above $44,000 Amid Bullish Signs and Network Growth

Bitcoin Surges Above $44,000 Amid Bullish Signs and Network Growth
Bitcoin Surges Above $44,000 Amid Bullish Signs and Network Growth

Bitcoin, the world’s leading cryptocurrency, has marked a notable ascent, breaching the $44,000 resistance level on Wednesday after a week of subdued market activity.

The surge, characterized by a 5% gain over the past 24 hours, culminated in a peak of $44,303, triggering short liquidations exceeding $36.6 million—per Coinglass data—as traders who bet against the upward trend found themselves compelled to close their positions.

The buoyant market conditions, however, present a dual-edged sword as analysts caution against a potential surge in sell pressure. Glassnode analysts highlight a crucial metric, revealing that a super-majority of investor coins have now returned to a state of profitability.

The total volume of coins “in-loss” has dwindled to approximately 1.9 million bitcoins. It also has a substantial portion held by long-term investors who entered the market near the highs of 2021.

This data aligns seamlessly with insights from The Block’s Data Dashboard, showcasing that over 88% of the circulating supply of Bitcoin is currently in profit, a level reminiscent of late November 2021, when Bitcoin soared above $50,000.

Image: The Block

Nonetheless, market observers, such as CryptoQuant, are cautious of potential headwinds in the short term. Their report emphasizes that short-term Bitcoin holders are witnessing high unrealized profit margins, historically preceding corrections in price.

Despite this, the report paints a positive picture for the longer term, suggesting that Bitcoin remains well within a bullish trajectory and may target $54,000 in the medium term, with a lofty possibility of exceeding $160,000 in the current price cycle.

Bitcoin Network Breaks New Record

While Bitcoin has yet to surpass its all-time high of $69,000 from November 2021, the cryptocurrency network has notched several milestones in 2023. The blockchain reached a historic half-terabyte size, surpassing 500 gigabytes, demanding node operators to maintain over 500 gigabytes of available storage for an unpruned Bitcoin blockchain.

This expansion represents a substantial growth of just over 100 GB in the past year, propelled by a notable surge in the average Bitcoin block size starting on January 2, 2023. 

Image: YCharts

The Ordinals Inscription trend, commencing in December 2022, played a pivotal role as a mysterious entity began embedding ordinal numbers into block transactions on select exchanges.

As the Bitcoin network evolves dynamically, breaking the half-terabyte barrier, it underscores the cryptocurrency’s resilience and adaptability. Despite the blockchain’s expanding size, Bitcoin has continually proven its worth as a store of wealth, a medium of exchange, and a hub of innovation.

As the market navigates through these intricate dynamics, investors and enthusiasts alike remain poised for the next chapter in Bitcoin’s compelling journey.

Bitcoin on a Bullish Rampage

As stated earlier, Bitcoin’s price continues to front a strong bullish trend as the benchmark cryptocurrency shrugs off previous attempts by bears to push it as low as $38,000.

After printing a new local high of $44,800 on December 8, increased profit-taking and bear activity saw the cryptocurrency immediately drop toward the $40,000 round figure. However, this descent was arrested by the $40,500 support zone. It has now pushed the cryptocurrency close to its December 8 levels.

BTC currently trades around the $44,000 mark as traders eagerly await the reclamation of the $45,000 mark for the first time since April of last year.

Over the coming days, we can expect to see the cryptocurrency test this critical price point. It will also very possibly break above it as it progresses to the $50,000 mark, which many believe can be achieved before the end of the year.

BTC Statistics Data

BTC Current Price: $44,000

Market Cap: $855B

BTC Circulating Supply: 19.57M

BTC Total Supply: 21M

Market Ranking: #1

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