If you are wondering whether or not this pre-halving rally will falter, you are probably missing the forest for the trees.
According to a new chart published by Glassnode, Bitcoin's unrealized profits remain at a "healthy level," which means that the new bull run is in its early stages.
#Bitcoin Unrealized Profit is still at a healthy level, showing no signs that the market has topped.— glassnode (@glassnode) March 2, 2020
Currently it's at a levels similar to the beginnings of past bull markets.https://t.co/06gsxJ0lof pic.twitter.com/0Yz5Kdnjbi
No signs of a market top
After Bitcoin rallied above $10,600, those investors who jumped ship ended up on the winning side. The price of the leading cryptocurrency took an elevator down to $8,500, plunging 14 percent in only one week along with global equities.
However, Glassnode calculated that only a relatively small amount of investors took profits compared to previous market peaks in June 2019 and, of course, December 2017.
The firm calculates the unrealized USD gains of Bitcoin investors by determining the difference between the current price and the realized price of every single coin in circulation.
Wait and see
As reported by U.Today, another major sign that this Bitcoin bull run is only getting started is no change in the number of exchange deposits. Hence, investors do not feel like it's the right time to cash out and prefer to adopt a wait-and-see approach with the next halving taking place in less than ten weeks.
Bitcoin recorded gargantuan gains after two of its previous supply cuts. However, there is still a lot of uncertainty around this halving since many believe it has already been priced in.
The reward halving could actually be bearish for Bitcoin once investors "sell the news."
