Glassnode Proposes that a Massive Spike is Just Around the Corner for Bitcoin

Following a significant parabolic bull run that saw Bitcoin (BTC) hit a new all-time high some weeks ago, the benchmark cryptocurrency—in a weird twist of events—is now in a battle to stay above the $30k psychological mark. This $12,000 decline has caused many to wonder if the bull cycle is over and if BTC will go into a prolonged correction, like the one seen in 2018 after the previous ATH.

However, recent data from Glassnode shows just the opposite of this notion. The Spent Output Profit Ratio, which divides the realized value (in USD) by the value at creation of a spent output, is used to highlight the condition of a Bitcoin correction during a bull run.

That said, following the recent sustained drop, the metric has fallen to a near-neutral level, indicating that retracement is nearing an end. Glassnode further mentioned that if the retracement indeed ends, data shows that there’s a massive rally waiting to happen, according to the Net Unrealized Profit/Loss (NUPL) metric.

By examining the price at which a UTXO (unspent transaction outpost) was created versus the current price of an asset, NUPL establishes if the digital asset within that UTXO is in a state of unrealized profit or loss.

The last time BTC’s NUPL was rebuffed at this level, in the 2017 bull run, the cryptocurrency jumped by a whopping 900% before hitting the top. That said, if Bitcoin is to replay this event, Gloassnode notes that it could surpass $300,000.

Key BTC Levels to Watch — January 27

Bitcoin saw a massive decline today, mostly because of the prevailing mood in the equity space. That said, the cryptocurrency is still faced with the task of breaking the $33k resistance to regain a modest bullish momentum. The recent descent to the $30k area should have attracted several dip buyers to come on board, which could propel the cryptocurrency higher in the coming hours and days.

Meanwhile, our key resistance levels are at $31,000, $32,000, and $33,000. While our key support levels are at $30,000, $29,400 and $28,500.

Total Market Capitalization: $927 billion

Bitcoin Market Capitalization: $588 billion

Bitcoin Dominance: 63.3%

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