Bitcoin Addresses In Profit Reach 5-Month High: Setback Incoming?

Bitcoin BTC/USD is seeing an overwhelmingly large number of investors profit off of their investments, triggering fears of a setback.

What Happened: According to data provided by Glassnode, the percentage of Bitcoin addresses that are currently profiting off of their balance amounts to nearly 92.7% — a five-month high. The number of balances currently in loss also reached a 5-month low.

Instilling further fears of a major correction, Bitcoin's reserve risk just reached a four-month high of 0.000097. This metric is used to estimate the confidence of long-term Bitcoin holders in the coin's price. The metric currently suggests that the price is relatively high while the confidence is low, which could anticipate a major selloff.

See Also: IS BITCOIN A GOOD INVESTMENT? 

Further cementing the idea that long-term holders are not feeling confident in Bitcoin's price is the fact that old coins are coming back to life. Glassnode data shows that the number of spent balances that were unmoved for five to seven years just reached a one-month high as well.

The possibility of a short-term setback after rejection at the $60,000 price level was also noted by cryptocurrency data expert Material Scientist. As per him, after the short-term weakness, Bitcoin is most probably going for new all-time highs.

Material Scientist echoes a recent Bloomberg report forecasting that Bitcoin is headed for $80,000 to $85,000.